Tax Credit on Demo/Mannequin/FCTP

[Dgut]

Purchased an out of state demo Lariat ER with 2,300 miles (Ford FTCP Program) that was being sold as new.


Filled out the title application as new. Bill of Sale states the car is being sold as new. Prior to going up to purchase dealer emailed that no one had taken title... when closing the deal and trading in my old vehicle the dealer lets me know they did title the vehicle to themselves under the demo program because they has to. Dealer is also now being cagey about signing the new 2023 form for the tax credit.

Am I eligible for the tax credit?

They were selling it for $1200 under MSRP so I still went through with the deal. It definitely changes how good I fell about it though.

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[Henry Ford]

What form for the tax credit? IRS form 8936 is the only form I'm aware of. It asks for the vin. If the dealer didn't take the tax credit you should get the tax credit.*

* Don't take tax advice from me. I'm an idiot.

 

[RickLightning]

Purchased an out of state demo Lariat ER with 2,300 miles (Ford FTCP Program) that was being sold as new.


Filled out the title application as new. Bill of Sale states the car is being sold as new. Prior to going up to purchase dealer emailed that no one had taken title... when closing the deal and trading in my old vehicle the dealer lets me know they did title the vehicle to themselves under the demo program because they has to. Dealer is also now being cagey about signing the new 2023 form for the tax credit.

Am I eligible for the tax credit?

They were selling it for $1200 under MSRP so I still went through with the deal. It definitely changes how good I fell about it though.

You are not eligible, because the vehicle was titled. Some states require the vehicle be titled, some do not. If it was titled, you cannot claim the credit. IRS regs clearly state that, even call out demos, and titling.

What form for the tax credit? IRS form 8936 is the only form I'm aware of. It asks for the vin. If the dealer didn't take the tax credit you should get the tax credit.*

* Don't take tax advice from me. I'm an idiot.

Good advice...

2023 sales require the dealership complete a form.

 

[Henry Ford]

2023 sales require the dealership complete a form.

Well that stinks.

 

[TaxmanHog]

Ethically, the dealership might have given you a better discount on the fact that it was a demonstrator and that you lost the opportunity to claim the full credit.

I wonder if the MoCo has a program to help the dealer move these types of vehicles with an enhanced credit back to the dealer if they in turn give the retail buyer a break?

Refresh my memory, we've discussed this in older treads when it was brought up.

 

[FatmanOSU]

I got my demo from Texas and it was not titled. Oklahoma Dealers were being shady saying they were new and wanting above MSRP. They even had the demo down to 20 miles of charge.

 

[Zprime29]

I was unware of anything the dealership needs to fill out for a 2023 sales tax credit. Is it something we get from them, or are you referring to the form they need to submit to the IRS? Are we supposed to sign it? Guess I need to email my tax lady again.

 

[TaxmanHog]

sales tax credit.

Not sure about "SALES" taxes in AZ or any rebates, this is a discussion about the Federal EV tax credits.

The form folks are talking about relates to sale of an BEV happening on or after 1/1/2023, the dealer issues a certificate in letter format on their letter head indicating the required data and they sign certifying that it does or does not qualify for the tax year 2023 credits.

Your "tax lady" might be able to shed some light on the matter, but for the purpose of preparing your tax year 2022 tax returns, it's not a relevant concern, but she could reinforce what she wants to see from you by next winter/spring [2024] when she is preparing your 2023 tax return.

 

[jimfigler]

I was unware of anything the dealership needs to fill out for a 2023 sales tax credit. Is it something we get from them, or are you referring to the form they need to submit to the IRS? Are we supposed to sign it? Guess I need to email my tax lady again.

This is only for vehicles purchased in 2023 and after. For tax filing this year for 2022 purchases you don't need that dealer form, just the IRS form.

 

[Zprime29]

Not sure about "SALES" taxes in AZ or any rebates, this is a discussion about the Federal EV tax credits.

DOH! That was a blunder on my part, trying to dual task while at work. I did not mean "sales" tax, just ignore that

 

[Zprime29]

This is only for vehicles purchased in 2023 and after. For tax filing this year for 2022 purchases you don't need that dealer form, just the IRS form.

Just purchased mine a couple weeks ago, I don't recall getting anything along those lines so now I need to go back and take a second look at what they sent me. I don't want to get caught off guard next year.

 

[jimfigler]

Just purchased mine a couple weeks ago, I don't recall getting anything along those lines so now I need to go back and take a second look at what they sent me. I don't want to get caught off guard next year.

Yep you should. Ford issued a template dealer form. Someone on here posted an image of it.

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