Why tax credit for Tesla Model 3 placed in service in December 2019 is being calculated at $7500 (form 8963) ? Wasn't the credit reduced to $1875 ?

[abctax55]

Because the correct phase out information wasn't entered?

[George4Tacks · Accepted solution]

This is where the preparer actually earns what they charge. Per the instructions:

Line 4b
Enter 100% unless the vehicle was a vehicle with at least four wheels manufactured by Tesla or General Motors (Chevrolet Bolt EV, etc.).
Tesla. Enter the following percentage if the vehicle was
manufactured by Tesla.
• 100% if you purchased it before January 1, 2019.
• 50% if you purchased it after December 31, 2018, but
before July 1, 2019.
• 25% if you purchased it after June 30, 2019, but before
January 1, 2020.
The credit is not available for Tesla vehicles purchased
after December 31, 2019.

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We need to enter the Phase-out Percentage in the line right below where we enter the KWH

[rita3]

Thank you so much! ... 

[rita3]

That is right, thank you !

[George4Tacks]

I would love Lacerte to be omnipotent, but separating every mistyped manufacturing name and date of delivery is maybe just a bit too much to ask for. I had to look this up and test it on a dummy return to get you an answer. I am glad I could help.