Dealer screwed me over for my 2018 $7500 tax credit.

[su_A_ve]

Never mind - just saw your update... Glad it worked out..

 

[Bender]

By the time the second contract is in effect on January 1st the dealership doesn't own the car anymore because there's a contract that said they sold you the car on December 31st. Therefore the second is void.

Disagree. 99.99% chance the later signed contract said it made any earlier contract/ terms fully null and void. Dealer committed fraud by continuing to process the void earlier dated contract.

 

[DaleL]

The issue was solved because a very wise member on this forum ( I forgot who it was) told me that per the IRS, the tax credit does not take effect on the date it was purchased but on the date it was delivered.

That's not quite right. Rather it is the date the vehicle was placed in service.

Line 3 of IRS Form 8936 "Enter date vehicle was placed in service (MM/DD/YYYY)".

 

[DucRider]

That's not quite right. Rather it is the date the vehicle was placed in service.

Line 3 of IRS Form 8936 "Enter date vehicle was placed in service (MM/DD/YYYY)".

The placed in service date is indeed what counts, but the IRS has ruled it cannot be before the owner has the ability to use the property in question. Placed in service can never be before delivery, but delivery can take place before the property is actually placed in service.

If someone bought a car on Dec 31st, 2018 in a different State and had it shipped to them with delivery several days later, they could not claim it on their 2018 taxes as it would not be available for their use until they took delivery. The purchase docs, payment, start of ownership and possibly even registration would be in 2018, but there is nowhere to enter that info on Form 8936.