Electric Vehicle Credit

[Kram BergGold]

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?

[Uncle Sam]

Electric Vehicle Credit

Don't forget to file a gift tax return for 1/2 fmv of the vehicle.

[Roland Slugg]

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 §1.30-1.

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.