Prius Tax Credit and AMT Carry Forward

[tds]

I replied an old post in the Tax Credit sub-forum. But it seems the traffic there is very low. So I reposted it here, hoping to get more info.

Originally Posted by worrywort

Just a warning about the tax credit. It is only available for the year that the car is placed in service. If you are subject to AMT (alternate minimum tax), you are not permitted to take the credit. I found this out the hard way with my 2006 Prius that I purchased in June 2006 with the understanding that it would qualify. I called the Complex Law Division at the IRS to inquire further after trying to get TaxCut to provide the credit when I filed my 2006 taxes. They confirmed that there is no credit if you have even $1 of AMT--and there is no carry over should you not have AMT in the subsequent year. The credit provision has not changed this year.

What is the phone number of the Complex Law Division of the IRS? I've noticed in the 2008 TaxCut software indicates the the disallowed Alternative Vehicle Credit due to AMT can be carried over. But the Form 8801 only indicates that Disallowed Electric Vehicle Credit can be carried over, with very little detail in the instruction. I want to find out whether TaxCut's claim is correct or not.

[bruceha_2000]

When did you buy your car? I presume since you are asking now, it is for the 2008 tax year and is thus a moot point. The tax credit for any hybrid made by Toyota Motor Corp (therefore including Lexus) dropped to 0 on Oct 1, 2007.

Lovely scheme put into the law to help the Detroit 3 through protectionism even though they had ZERO to offer in competition (and still don't). If the law makers actually gave a rat's patootie about people buying fuel efficient vehicles, they would not have added the 'phase out starting at 60,000 vehicles per manufacturer' clause.

[tds]

Originally Posted by bruceha_2000

When did you buy your car? I presume since you are asking now, it is for the 2008 tax year and is thus a moot point. The tax credit for any hybrid made by Toyota Motor Corp (therefore including Lexus) dropped to 0 on Oct 1, 2007.

Lovely scheme put into the law to help the Detroit 3 through protectionism even though they had ZERO to offer in competition (and still don't). If the law makers actually gave a rat's patootie about people buying fuel efficient vehicles, they would not have added the 'phase out starting at 60,000 vehicles per manufacturer' clause.

If the disallowed credit due to AMT can indeed be carried forward, I can file an amended return for 2007 to get back (a portion of) the credit I lost in 2006. But I suspect it is just a mistake TaxCut has made.

Note the disallowed Electric Vehicle Credit due to AMT can always be carried forward.