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What does date placed in service mean? vehicle expense?

Forum|Forum|6 years ago
June 6, 2019
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Best answer by MargaretL

Placed in service means the date that you started using the car for business/work purposes.

MargaretLAnswer

Employee

Placed in service means the date that you started using the car for business/work purposes.

T

tvhsccasneryoda

Does that mean of THIS tax year, or the date you first EVER started using it for bussiness?!? Answers and questions like this just aren't clear enough!

B

biteddie

Need a more clear answer. For example, if I purchased and took delivery of car in November but only started using it in December? then Will December could be the date vehicle was placed in service? Any paperwork that we will need to prove this ?

A

alfredoborrero

I took delivery of my 2022 Tesla on January 2023.

Can I still get a EV Tax Credit for the 2022 Fiscal Year?

According to turbotax I am not eligible and I will get zero tax credit. Am I doing something wrong? I was under the impression that I can take advantage of the EV Federal Tax Credit if I purchase a vehicle before March 2023. Please reply as soon as possible.

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ErnieS0

No, you cannot claim a 2022 credit for a vehicle purchased in 2023.

Rules for claiming the electric vehicle credit changed for 2023. However, Treasury and the IRS will not issue final regulations until March so those changes will not be reflected in TurboTax until the government issues instructions.

Refer to “Treasury Releases Additional Information on Clean Vehicle Provisions of Inflation Reduction Act”

The current electric vehicle credit Form 8936 is for use for tax years beginning in 2021 or later, until a later revision is issued. Use prior revisions of the form for earlier tax years. All revisions are available at IRS.gov/Form8936.

For information about credit for vehicles purchased in 2023 see “Manufacturers and Models for New Qualified Clean Vehicles Purchased in 2023 or After.”

@ alfredoborrero

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M

missileboss2022

A 2022 chevy bolt euv was a demo vehicle at a dealership, the date of placed in service for the car's warranty was in summer 2021. However the car was sold as new in February 2023 due to having a blank title. The dealership signed that the car would be classified as a New Clean Vehicle sold after 2022. Would this car be eligible for the maximum $7,500 tax credit? All criteria is met otherwise besides the date placed in service. Or would date of placing in service be the day the customer purchased the car, hence placing the car in service?

If not eligible for up to $7,500, can the dealership be held accountable for falsely certifying that the car would be classified as a New Clean Vehicle?

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missileboss2022

A dealership's demonstrator (demo) vehicle was sold as a new vehicle due to it never being purchased, registered, or titled. For warranty purposes, the vehicle's placed in service date was the date the dealership began using the car as a demonstrator vehicle. For my personal tax purposes, since the car is for personal use only (not business), would the placed in service date reported to the IRS be the date I purchased and took possession (occurred on the same date in this case) of the new vehicle?

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mglauner

Yes, if you are claiming the Energy Efficient Vehicle Credit, the 'date placed in service' would be the date you took possession of the vehicle, since you are not using the vehicle for Business.

Here's how to claim the credit in TurboTax: