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    Electric Vehicle Credit

    My client wants to buy a new electric vehicle. He wants to pay for it with a loan in his name but have his adult son's name on the car title as a co-owner to make it simpler for the son to register the car in another state if he moves there. I think the son should pay $1 for his share in the car. This establishes his ownership and entitles the Dad to the entire credit less $1 of cost. The question is if the son moves to CA and registers the care there within 3 years of the purchase is there recapture that needs to be dealt with?

    #2
    Electric Vehicle Credit

    Don't forget to file a gift tax return for 1/2 fmv of the vehicle.
    Uncle Sam, CPA, EA. ARA, NTPI Fellow

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      #3
      Originally posted by Kram BergGold
      The question is if the son moves to CA and registers the care [sic] there within 3 years of the purchase is there recapture that needs to be dealt with?
      No. That would not be a "recapture event." See Regs ยง1.30-1.

      I don't see why the T/P wants to put his son's name on the title or why you think the son should pay $1 toward the car's cost. If the buyer wants to sell or give the car to his son at some future time, he can easily do so then.
      Roland Slugg
      "I do what I can."

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