Tax break question

[benandersen]

I bought my car from a dealership with 300 miles on it. They said that it was used by another dealership only and was never sold. Is there a possibility that I can still cash in on the tax benefit?

Any thoughts?

I'm in California.

[kenoarto]

I'm very interested in this question. We purchased the demo, too.

[IsrAmeriPrius]

<div class='quotetop'>QUOTE(benandersen @ Feb 9 2007, 09:59 PM) [snapback]387917[/snapback]</div>

Any thoughts?[/b]

It depends on whether it was previously registered or driven only with "Dealer's plates."

[JimN]

<div class='quotetop'>QUOTE(kenoarto @ Feb 10 2007, 01:06 AM) [snapback]387922[/snapback]</div>

I'm very interested in this question. We purchased the demo, too.
[/b]

Search for your car on cars.com and as IsrAmeriPrius said, if you are the first owner (excluding the dealer) then it is a new car. In some states the title for a new car has to be in the dealer's name.

[kenoarto]

<div class='quotetop'>QUOTE(JimN @ Feb 10 2007, 09:18 PM) [snapback]388247[/snapback]</div>

Search for your car on cars.com and as IsrAmeriPrius said, if you are the first owner (excluding the dealer) then it is a new car. In some states the title for a new car has to be in the dealer's name.
[/b]

Exactly what part of cars.com? It's huge site.
We live in and purchased the car in Illinois.

[Springtime]

In PA on the bill of sale paperwork there is a place to indicate if the car is "new" or a "demo". My car had 220 miles on it because it was received at one dealer, transfered to another dealer two hundered miles away and then transferred again another 20 miles to my dealer. Because my paperwork clearly indicates the car is "new" I had no problems.

However, if the dealer set this up as a demo car and demo is indicated on the bill of sale paperwork you may have a problem qualifiying for the tax credit. I don't think it is a question of how many miles show on the car as much as how the dealer set up the car in his records.

Ask the dealer if he is selling the car as new or as a demo. Ask him how the paperwork will clasify the sale.

Springtime

[JimN]

<div class='quotetop'>QUOTE(kenoarto @ Feb 12 2007, 12:15 AM) [snapback]388748[/snapback]</div>

Exactly what part of cars.com? It's huge site.
We live in and purchased the car in Illinois.
[/b]

I'm sorry. Thinking one thing and typing another. I meant www.carfax.com. In NJ there is a set of boxes to check to describe the car: New, Used, Demo, Previous Rental. However, I suspect this situation is something the IRS wouldn't likely look at on its own merits.