Retroactive E-motorcycle Federal Tax Credit

[Slayer]

@Slayer, Any response from the IRS on the amended 2018 return? I am getting ready to go through that process for my EXR purchased in 2018. Thanks.

 

[Trialsman]

For the 2019 return this is only for new vehicles only correct?

 

[leeo45]

For the 2019 return this is only for new vehicles only correct?

Correct, regardless of the tax year or vehicle year, you need to be the original owner and you file for the credit in the year you bought the bike. The actual wording in the tax form is that you file in the year you "placed the vehicle in service".

• You are the owner of the vehicle. If the vehicle is leased, only the lessor and not the lessee, is entitled to the credit.
• You placed the vehicle in service during your tax year.
• The vehicle is manufactured primarily for use on public streets, roads, and highways.
• The original use of the vehicle began with you.
• You acquired the vehicle for use or to lease to others, and not for resale.
• You use the vehicle primarily in the United States.

 

[leeo45]

View attachment 5083

Excellent reply.

 

[Trialsman]

Hey Rix, see if you can get credit for the EXR you sold me.

 

[leeo45]

I used Turbo Tax and typed in the serial number and purchase price and it calculated the credit - I also filed for a home charging station and got 30% back in the install cost for the 240v outlet I installed for the bike.

Nice

Hey @VINSANITY which version of TurboTax are you using? I tried to enter the ALTA into an amended 2018 return and it tells me that my ALTA is not eligible because it was purchased after 12/31/2017. It seems that TT hasn't updated to match the new tax regs. I have downloaded all of the TT updates for both the 2019 and 2018 versions of the software. I'm guessing that perhaps you bought your bike in 2019 and they updated 2019 but not 2018?? Thanks.

Guess I'll print some paper forms.

 

[VINSANITY]

I used Turbo tax premier - I recall needing to get Premiere because it has forms 8936 (bike credit) and form 8911 (charger credit)

 

[C5tor]

I used Turbo tax premier - I recall needing to get Premiere because it has forms 8936 (bike credit) and form 8911 (charger credit)

Turbo Tax 2019 Deluxe also worked for me. You would have had to purchase it (new) in 2019 to qualify.

 

[Redwolf]

Turbo Tax 2019 Deluxe also worked for me. You would have had to purchase it (new) in 2019 to qualify.

No, it was retroactive to machines purchased new in 2018 also.

 

[leeo45]

No, it was retroactive to machines purchased new in 2018 also.

IRS tax regs changed in December 2019 to provide the credit for 2018 purchases, however 2018 TurboTax even with the latest updates does not include that change. You file for the credit in the year you placed the vehicle in service so if you bought your EX/EXR/SM in 2019 the 2019 version of TurboTax should work.

I have gone through all of the TurboTax/Intuit support info and forums this weekend and believe I found half of an answer. TurboTax is supposed to have the updates for all of the retroactive 2018 tax regs (which includes the EV credit) completed by mid-April. (see below) This info was only posted March 23rd so I'm sure the timing could change. I have submitted my email for notification when the updates are available. I'll post something here once I have confirmed the 2018 TurboTax software update works.

P.S. You have three years to file and amended return.

2018 Extenders passed under Taxpayer Certainty and Disaster Tax Relief Act of 2019

In December 2019, Congress passed and the President signed into law the Taxpayer Certainty and Disaster Tax Relief Act of 2019 , providing tax relief for millions of Americans. The law extends many already expired provisions that provide tax relief and support for families and individuals, special tax relief for certain disaster victims, and the extension of energy efficient tax credits.

For 2018 we are currently working on adding the extenders into 2018 TurboTax. This is projected to be completed by mid-April 2020.

 

[FrancoLizard]

When did I purchase my EX? Dec. 9th, 2017. Thought I had just stumbled across some free money . . .

 

[leeo45]

When did I purchase my EX? Dec. 9th, 2017. Thought I had just stumbled across some free money . . .

As I understand it your purchase qualified for the credit even before Congress changed the tax law in December 2019 to extend the eligible period.

The original regulations went through 12/31/2017 so you should be able to file an amended return for tax year 2017. This assumes you paid federal taxes for the year 2017.

 

[FrancoLizard]

As I understand it your purchase qualified for the credit even before Congress changed the tax law in December 2019 to extend the eligible period.

The original regulations went through 12/31/2017 so you should be able to file an amended return for tax year 2017. This assumes you paid federal taxes for the year 2017.

You were correct, and I was able to file an amended return. Thank you very much for your clarification.

 

[leeo45]

In case anyone else is waiting to use TurboTax 2018 to file an amended return, I received an email today from their developers stating that the projected date for the 2018 program updates has pushed to mid-May.

 

[Trialsman]

It's official, I got the tax returns back from the accountant and I got $1,073 credit for buying the '19 EXR in Texas. Now I wonder if the '17 MX from Georgia would be considered as an amended return for 2018. I had set it up to be street legal and I had plates, inspection, and insurance on it.

 

[leeo45]

It's official, I got the tax returns back from the accountant and I got $1,073 credit for buying the '19 EXR in Texas. Now I wonder if the '17 MX from Georgia would be considered as an amended return for 2018. I had set it up to be street legal and I had plates, inspection, and insurance on it.

The MX would not be eligible according to the tax regs (manufactured primarily for use on public streets). The IRS may or may not know the difference. However, I would expect your accountant to ask that question and provide some guidance if he/she is named as the preparer on the amended return.

 

[Trialsman]

The MX would not be eligible according to the tax regs (manufactured primarily for use on public streets).

Oh well, One credit is way better than none at all.

 

[leeo45]

In case anyone besides me needs to process a 2018 amended return using TurboTax, the software updates for the revised tax regulations have finally been completed.

"At this time these Extended Tax Laws have been made available in the TurboTax 2018 software to allow TurboTax users the chance to amend their 2018 return to claim these tax credits."