Conflicting info for the Clean Veicle Credit

[Snaggletooth]

Must be used for personal driving purposes, and not to have in inventory.

But if auto is leased, only the lessor can take the credit and not the lessee. Most new car "sales' are leased nowadays.

But that means only the dealer can take the credit if car is leased. However, cannot be taken if dealer purchased the vehicle for inventory.

Comments??

[Rapid Robert]

Cars for lease are not "inventory" (COGS), only cars for sale are inventory. I don't see any conflict.

"Most new car "sales' are leased nowadays."

Is there any link you can provide to back up that claim?

[TaxGuyBill]

Must be used for personal driving purposes, and not to have in inventory.

Where do you see the word "inventory"?

That seems to be a garbling of the rule "which is acquired for use or lease by the taxpayer and not for resale".

https://www.law.cornell.edu/uscode/text/26/30D

[Snaggletooth]

I don't see the word "inventory" but the general language emphasizes personal use versus a stockpiling of vehicles. RR, I simply have come to the conclusion that more people rent than buy. This is somewhat reinforced by salesmen who come rushing out and ask you "How much would you like to pay per month?" And the lower amount comes from leasing with the option to buy after three years. Some of my customers didn't like having to pay for the vehicles after three years (or give it up). They won't ever lease again.

Dave Ramsey (radio host Nashville finance advisor) calls it a "Fleece."

[Lion]

More of my clients buy than lease. I think ALL of them own their cars now.