Tax A

The IRS could not answer a tax question I called about, but today I received the IRS answer via email. To rehash briefly; 2009 stimulus credit for new car purchases did not address purchases of leased cars (I bought out my lease). The law uses vague language.

My expectation was: "... an IRS agent will conclude use under the lease made the vehicle considered used and thereby made me ineligible for this credit."

The IRS conclusion was very similar to my expectation:

Based on the information provided, the vehicle in question is not a qualifying vehicle since the vehicle was not new. The original owner was the the leasing company. They retained title while leasing it to you. Although the vehicle was driven by you during the lease and eventually sold to you, it was sold as a used vehicle, not new.