To claim a purchase tax credit, the specific documentation required may vary depending on the type of tax credit you’re applying for. Here are some general guidelines for different scenarios:
For New Clean Vehicle Tax Credits
- Time-of-Sale Report: The dealer must provide you with a time-of-sale report when you purchase the vehicle. This report confirms the purchase’s eligibility for the credit and whether the credit was transferred to the dealer.
- VIN Information: You need the Vehicle Identification Number (VIN) for Form 8936, which you file with your tax return.
- Proof of Purchase: Ensure that the dealer has successfully submitted the time-of-sale report to the IRS.
For General Sales Tax Credits
- Receipts or Invoices: Copies of receipts or invoices showing the credit issued and the amount of sales tax returned to the customer.
- Exemption Certificates: Copies of any exemption certificates received after tax remittance.
- Original Invoices: Copies of original invoices detailing sales amount, sales tax collected, customer name, and address.
For Renewable Energy Tax Credits
- Minimum Required Documentation: Sellers must provide documentation to validate the existence and amount of the tax credit being transferred.
- Registration Information: If applicable, documentation related to the pre-filing registration process, including a unique registration number for each credit property.
Always check with the relevant tax authority (like the IRS for federal credits or your state’s tax department) to confirm the required documentation for your specific situation.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-documentation-is-required-to-claim-the-purchase-tax-credit/
