Author Topic: Form 3800 General Business Tax Credit  (Read 134 times)

DavidAnnArbor

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Form 3800 General Business Tax Credit
« on: August 30, 2017, 12:03:46 PM »
If I'm reading the Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit correctly, I can apply the business portion of my car use, to become an equivalent Form 3800 General Business Tax Credit.

I'm self-employed, sole proprietor, and so far for 2017 I use my vehicle 80% for business use based on my log.

Consequently, on Form 8936, if I buy an electric car that qualifies for the credit in 2017, I can state that 80% of car is used for business use, and take that credit over to Form 3800 General Business Tax Credit.  It looks like this business credit can carryback and carryforward. 

Is anyone familiar with this General Business TAx Credit, and can give me some advice ?

jwright

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Re: Form 3800 General Business Tax Credit
« Reply #1 on: August 31, 2017, 12:10:13 PM »
What you've described is basically correct.  Part III of Form 3800 has a list of eligible credits, including the Electric Vehicle Credit.  You will sum up all the various credits and then use Parts I and II of Form 3800 to determine if the credit can offset your tax. 

So Form 8936 calculates the amount of credit you've earned.  Form 3800 determines how much of the credit you can use. 

DavidAnnArbor

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Re: Form 3800 General Business Tax Credit
« Reply #2 on: August 31, 2017, 12:37:38 PM »
I see there is a "Recapture Warning". So if I determine that I will use 80% of my vehicle as business use, and it turns out I can only use 50% as business use, then I assume I have to either refund a part of the tax credit, or at the very least not carry forward some of that tax credit.

I don't pay enough in federal taxes for this size of a tax credit, but it seems the business tax credit allows for carryforward, and maybe carryback 1 year ?