New Car Sales Tax Credit

[AJsTax]

Read The Earleir Posts

Quote: New Car buyer is just not the original user, but is also to be the first registered owner at DMV. In the scenario that I have - the Auto Dealership is the "Original User" it remains to be seen who the "first time registered owner" is.


DMV requires the dealerships to register the cars so how can the buyer be the original owner?

IRS defines New Car in this issue as original user of the car. A demo car is used the the dealership which makes it the original user.
It matters not to me if you take the credit for your client but it sure is going to matter to your client when the IRS denies the claim and the client owes addition taxes, penalties and license.

Demos are the same as leases...when they are sold they are sold as used cars.

Dealership use of the vehicle DOES NOT COUNT as a proir owner of the vehicle for the purposes of this credit according to the RULE. Try reading it. So the first registered owner of the vehicle outside the dealership is the qualifying event. Now if the car had been sold and bought back by the dealership I might have a problem with that one.