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Don't forget to check your state tax code as well.
 
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Does it include if it was bought used at an authorized dealership?
No, it's only available to the first registered owner. In fact when leasing, the lease company gets the credit since they are technically the first owner of the car. Although many of them pass that on to the customer in the form of lower lease payments
 

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No Federal credit, but there might be state, local municipal & utility incentives.
The Federal tax credit of $7500 is still in effect for Honda Clarity PHEVs, purchased in 2021. Honda has not yet exceeded the number (200,000) of EV/PHEV sales that causes the credit to phase out. Tesla and Chevrolet have both exceeded that number (years ago), and their EVs are no longer eligible for the Federal tax credit. Toyota is expected to get there in the next couple of months.

For a "scorecard" of automakers, and their sales totals, see:

 

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The Federal tax credit of $7500 is still in effect for Honda Clarity PHEVs, purchased in 2021. Honda has not yet exceeded the number (200,000) of EV/PHEV sales that causes the credit to phase out. Tesla and Chevrolet have both exceeded that number (years ago), and their EVs are no longer eligible for the Federal tax credit. Toyota is expected to get there in the next couple of months.

For a "scorecard" of automakers, and their sales totals, see:

Correct, although 4sallypat was replying to someone who was asking whether the federal credit applies to a used car purchase.

I didn't realize that Toyota is getting so close to reaching the limit. I would think the RAV4 Prime is helping with that. Although once the limit is reached there is a phaseout period that lasts for well over a year. The quarter that a manufacturer hits the 200,000 number, the credit is good for that entire quarter, and for the next two quarters. So let's say Toyota hits the limit in the first quarter of this year which is possible, the $7,500 credit will then be good for all qualifying cars purchased through 9/30/2022. The next two quarters after that the credit is reduced 50%, or $3,750, that would be for cars purchased through 3/31/2023. Then the two final quarters after that would be at 25%, or $1,875, through 9/30/2023.

If Toyota somehow squeaks through 1st quarter and hits the 200,000 limit in early Q2, then the full $7,500 credit will be good through the end of this year, with partial credits good through the end of next year.
 

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Correct, although 4sallypat was replying to someone who was asking whether the federal credit applies to a used car purchase.

I didn't realize that Toyota is getting so close to reaching the limit. I would think the RAV4 Prime is helping with that. Although once the limit is reached there is a phaseout period that lasts for well over a year. The quarter that a manufacturer hits the 200,000 number, the credit is good for that entire quarter, and for the next two quarters. So let's say Toyota hits the limit in the first quarter of this year which is possible, the $7,500 credit will then be good for all qualifying cars purchased through 9/30/2022. The next two quarters after that the credit is reduced 50%, or $3,750, that would be for cars purchased through 3/31/2023. Then the two final quarters after that would be at 25%, or $1,875, through 9/30/2023.

If Toyota somehow squeaks through 1st quarter and hits the 200,000 limit in early Q2, then the full $7,500 credit will be good through the end of this year, with partial credits good through the end of next year.
IIRC, Tesla did just that. They significantly slowed sales at the end of the quarter where they would have hit the magic 200,000 sales number, and by doing so, extended their eligibility by another three months.
 

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Fortunately (?) I was able to get the full $7500 credit.
Yes you are fortunate to have that much tax liability :) Actually some people who don't oftentimes are people who are retired but who don't want to draw a bunch of money out of their 401K just to create a large enough tax liability to get the full credit. But one option in that situation is to do a Roth conversion, moving money from a regular IRA to a Roth IRA will generate taxable income. If done correctly the tax liability will be close to the credit amount. Best to do this with the guidance of a financial advisor but it's a very common procedure.
 

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Yes you are fortunate to have that much tax liability :) Actually some people who don't oftentimes are people who are retired but who don't want to draw a bunch of money out of their 401K just to create a large enough tax liability to get the full credit. But one option in that situation is to do a Roth conversion, moving money from a regular IRA to a Roth IRA will generate taxable income. If done correctly the tax liability will be close to the credit amount. Best to do this with the guidance of a financial advisor but it's a very common procedure.
We sold a rental home in 2021. Made a great profit. Uncle Sam and Gavin Newsome are very happy :)
 

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We sold a rental home in 2021. Made a great profit. Uncle Sam and Gavin Newsome are very happy :)
Too bad you couldn't move into it for two out of five years for the $250k x 2 (if married) deduction. We're in the same boat. Gonna get hit hard, if we sell our rental before we die. That's not our plan, though. We've told our kids that housing is all they're going to get. We're doing our best to spend the rest...:cool:
 

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Too bad you couldn't move into it for two out of five years for the $250k x 2 (if married) deduction. We're in the same boat. Gonna get hit hard, if we sell our rental before we die. That's not our plan, though. We've told our kids that housing is all they're going to get. We're doing our best to spend the rest...:cool:
When turning a rental into a primary residence you are just postponing the recaptured depreciation. it changes the cost basis of the residence. Do get to avoid the capital gains up to $500k, though.
 
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