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Clean Vehicle Credit on TurboTax Business 2023

Forum|Forum|2 years ago
March 7, 2024
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TurboTax Business Desktop 2023 doesn't seem to have any questions related to Clean Vehicle Credit if an electric car is purchased by the S-Corp? I thought S-Corps need to file the Form 8936 to claim the 7.5K credit, is that correct?

And does the income threshold of 150K also apply to the S-Corp or its shareholders, even if it's a 100% business vehicle?

TurboTax Business Windows

Best answer by AmeliesUncle

The last I checked, you are correct that the S-corporation program does not have the required form. You might need to use different software or go to a tax professional.

The credit is passed to the shareholders via the K-1. It is on their personal tax return (Form 1040) where the AGI limit is applied to see if they qualify for the credit or not.

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AmeliesUncleAnswer

The last I checked, you are correct that the S-corporation program does not have the required form. You might need to use different software or go to a tax professional.

The credit is passed to the shareholders via the K-1. It is on their personal tax return (Form 1040) where the AGI limit is applied to see if they qualify for the credit or not.

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XEN0Author

If the credit is passed to the shareholders personal Form 1040 via the K-1, then would the North America Final Assembly Requirements also apply in addition to the AGI Income Limit, even though it's a commercial vehicle purchased by the S-Corp?

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AmeliesUncle

Now you seem to be asking about the "Qualified Commercial Clean Vehicle Credit" on Form 8936-A, which is slightly different than the Clean Vehicle Credit on Form 8936.

I'm not sure if that is in the 1120-S program or not.