You cannot claim the federal used electric vehicle (EV) tax credit if you purchased the vehicle from a private seller. To be eligible for the used clean vehicle credit, the vehicle must be bought from a licensed dealer, not a private party. The IRS specifies that starting January 1, 2023, the credit applies only if you buy a qualified used EV or fuel cell vehicle from a licensed dealer for $25,000 or less. Additionally, the dealer must register online and report the sale information to the IRS for the vehicle to qualify, which is not possible in a private sale.
Other key eligibility criteria for this credit include:
- Being an individual buying the vehicle for use, not resale
- Not being the original owner
- Meeting income limits based on modified adjusted gross income
- Not having claimed another used clean vehicle credit in the last 3 years
In summary, private party purchases do not qualify because the necessary dealer reporting and registration requirements cannot be met. Only used EV purchases from licensed dealers qualify for the federal used clean vehicle tax credit.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-claim-the-used-ev-tax-credit-if-i-purchased-the-vehicle-from-a-private-seller/
