Lightning for resale on Cars&Bids

[TXLightning]

Yea, someone asked me about that on CarsandBids and I said I really don't know anything about it. Which I don't.
I was under the impression you had to hold onto it for the entire tax year to claim the credit. Also, pretty sure I've been told that if I didn't and sold it I could be audited. That makes claiming it seem risky and in a gray area.

You definitely can claim it. The law says you can’t have bought it with the “intent” to resell.

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[RavenYZF-R6]

Claim it! Even if you’re worried and just put the $$ into savings until you’re audit clear. Worth it!

 

[MickeyAO]

Having an A-10 come in and save your ass, is one of my fondest combat memories. Hearing that BRRRT and then all of a sudden you're not getting shot at anymore was great

@BoreBrotherBore get well and DM me if there is anything I can do to help you out

My three combat units include (in order) Warthogs, Rivet Joint, and Strike Eagles...but I was safely back at base running the ops desk stepping the pilots to their jets to go help you guys on the line.

I think you would have to spend a significant number of years in the AF to understand each of the airframes I listed.

 

[2000Firehawk]

You are unlikely to recover “market” value unless you have it insured on an agreed value policy.

 

[rdr854]

You are unlikely to recover “market” value unless you have it insured on an agreed value policy.

Isn’t actual cash value (ACV) the same as market value? In the fire service, we use declared value fir fire apparatus/ambulances and other specialty vehicles where we determine the value of the vehicle for insurance purposes in case of a total loss. Often, the declared value will be an approximate replacement cost. As an example, a fire department could have a fire truck that is 15 years old and well worn out insured for upwards of $800K rather than its ACV, which in today‘s market might be $100K.

 

[Ken]

@BoreBrotherBore get well and DM me if there is anything I can do to help you out

My three combat units include (in order) Warthogs, Rivet Joint, and Strike Eagles...but I was safely back at base running the ops desk stepping the pilots to their jets to go help you guys on the line.

I think you would have to spend a significant number of years in the AF to understand each of the airframes I listed.

RJ brings back memories. I flew the Navy equivalent for many years, shared a lot of ramp time with them in Crete and various other less fun locations.

 

[MickeyAO]

RJ brings back memories. I flew the Navy equivalent for many years, shared a lot of ramp time with them in Crete and various other less fun locations.

Well, the over/under I set for who would understand Rivit Joint hit the over

 

[greenne]

RJ brings back memories. I flew the Navy equivalent for many years, shared a lot of ramp time with them in Crete and various other less fun locations.

Good ole Offutt.....(KOFF).......

I was at Scott(AMC, TRANSCOM) then rolled down the DC area after an Army Support assignment at Ft Drum.

We saw a little bit of everything at Andrews...

 

[LagSwag1]

genuinely surprised that this only sold for 100.5k. Considering rivians are going for 110 ish right now, I wouldve expected the first lightning to go much higher.

 

[NmbrsNvrLie]

Agree with you that $100k seems pretty disappointing. Another good reason to hang onto mine and keep driving it. Doesn't look like we have a winning lottery ticket here boys. Mine will probably go to a family member then if I decide I prefer the R1T.

 

[Amps]

genuinely surprised that this only sold for 100.5k.

This is one that I wish had gone for more money. The Brother deserves it.

 

[RickLightning]

You definitely can claim it. The law says you can’t have bought it with the “intent” to resell.

The word "intent" appears nowhere in the regulation.

The actual wording of the IRS regulation:

The vehicles must be acquired for use or lease and not for resale.

This situation as presented is pretty clear that it was acquired, and then almost immediately resold. It would be very likely in an audit that the IRS would disallow the tax credit.

The other reality is that many people don't qualify for the tax credit, which is non-refundable. In other words, you must have $7,500 of tax liability to claim the full credit. Some people have trouble hitting that number.

https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d

 

[LagSwag1]

The word "intent" appears nowhere in the regulation.

The actual wording of the IRS regulation:

The vehicles must be acquired for use or lease and not for resale.

This situation as presented is pretty clear that it was acquired, and then almost immediately resold. It would be very likely in an audit that the IRS would disallow the tax credit.

The other reality is that many people don't qualify for the tax credit, which is non-refundable. In other words, you must have $7,500 of tax liability to claim the full credit. Some people have trouble hitting that number.

https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d

anyone buying an 80k+ truck shouldnt have any trouble qualifying for the 7500 credit.


Also, he didnt acquire the vehicle for resale. It was for use, didnt fit his use case at the moment, and he sold it. I'd claim the credit still personally, and just hold on to it in the off chance of an audit and just pay it back if they demand it. If not, then keep it.

 

[FordLightningMan]

The $100.5k sale price is interesting, because depending where you live, there isn't much profit left on this sale. I have to pay 8.75% sales tax, so that's a purchase price of $87k, on a $80k vehicle. There's a $4.5k auction fee, which is actually pretty reasonable versus other sites I've seen. That means you're at $91.5k all in, so $10k profit. Depending on your tax bracket, short term gains tax likely will be around $3k depending on state. This nets a $7k profit, which isn't small change, but this is for one of the first trucks produced.

What if when there are more trucks on the road, they start selling for $95k? Buying a $80k vehicle for $3k profit is a hell of a risk. What if you are stuck holding a truck you don't want? Based on the number of people on this site alone looking to sell, supply and demand won't likely be in subsequent sellers' favor.

 

[2000Firehawk]

The fee is paid by the buyer not the seller on BaT (5%) and Cars and Bids (4.5%). Seller gets the full bid price.

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