Need innovative way to take tax credit

[psibill]

What I'm looking for is an "innovative" way that would allow us to take advantage of the Prius tax credit. The idea of "increase your income" doesn't work 'cause it's too late (but I did try during the '06 year).

Like a lot of folks, one of the reasons that figured in the decision to buy this car was the carrot of a tax reduction. But now it's not looking nearly so good.

We are self-employed, and thus get hit with the self employment taxes which are NOT offset by the Prius credit.

And working the figures another way, we can get hit with the AMT, which is also not offset by the Prius credit.

Who's got the ideas?

Thx.

--Bill

[Godiva]

Can you and your wife file separately?

Did you itemize?

[zijlstra]

<div class='quotetop'>QUOTE(Bill-psi @ Mar 31 2007, 11:12 PM) [snapback]415793[/snapback]</div>

What I'm looking for is an "innovative" way that would allow us to take advantage of the Prius tax credit. The idea of "increase your income" doesn't work 'cause it's too late (but I did try during the '06 year).

Like a lot of folks, one of the reasons that figured in the decision to buy this car was the carrot of a tax reduction. But now it's not looking nearly so good.

We are self-employed, and thus get hit with the self employment taxes which are NOT offset by the Prius credit.

And working the figures another way, we can get hit with the AMT, which is also not offset by the Prius credit.

Who's got the ideas?

Thx.

--Bill
[/b]

What type of structure does your business have (Sole Proprietor, Partnership, LLC, S-Corp/C-Corp)? You might be able to deduct it from you business taxes, if you have any. Otherwise, I think you can only deduct it from you income tax, so if you don't have that much income tax then you probably won't be able to deduct it.

[psibill]

Do not believe we can file separately.

And, yes at this point, we are able to itemize. Not itemizing would increase our taxes, and thus allow for a larger portion of the hybrid credit to come into play, but that's not what I want to do as it really doesn't result in any benefit (except for maybe making the tax preparation easier).

What I don't want to do is increase our tax liability for the sole purpose of using up some of the Prius credit, but to rejigger our taxes so that WE also benefit. Like, if it were possible to delay use of certain credits to next year in order to take advantage of the one-time-only use of the Hybrid credit this year.

That's the kind of stuff I'm trying to figure out.

Thanks.

[jeneric]

<div class='quotetop'>QUOTE(Bill-psi @ Mar 31 2007, 09:12 PM) [snapback]415793[/snapback]</div>

And working the figures another way, we can get hit with the AMT, which is also not offset by the Prius credit.
[/b]

What way is that? It looks like my wife has a few thousand in SE tax, so it seems like it wouldn't be too hard to shift that around or offset it somehow. I don't think we're worried about AMT.