can co-buyer claim for the tax credit

[maychau]

my sister and I purchased the prius together. She is the buyer and i am the co-buyer. Can I claim for the tax credit as my sister will not claim for it. Please help.

[firepa63]

Who's name is on the title?

[maychau]

Originally Posted by firepa63

Who's name is on the title?

my sister
but, aren't we supposed to sumbit only the invoice ?? my name is on the invoice.

[pewd]

that is a question best answered by a tax accountant.
i presonally wouldn't fill in my tax return based on advice received from strangers on the 'net.

[JimN]

Originally Posted by maychau

my sister
but, aren't we supposed to sumbit only the invoice ?? my name is on the invoice.

You don't submit anything. The title says she's the owner. Questions like these need to be asked before the transaction.

[maychau]

Originally Posted by JimN

You don't submit anything. The title says she's the owner. Questions like these need to be asked before the transaction.

what if i do the tile transfer to my name at DMV, I am a a little confused to the IRS requirement:

b. For qualifying vehicles used by a tax-exempt entity, the person who sold the qualifying vehicle to the person or entity using the vehicle is eligible to claim the credit, but only if the seller clearly discloses in a document to the tax-exempt entity the amount of credit.

so, how the disclose in a document work??
if I do the transfer now, the year of 2008, I will have to claim the tax credit next year, right?? it won't matter if I owned a 2006 prius, right??

[IsrAmeriPrius]

Originally Posted by maychau

b. For qualifying vehicles used by a tax-exempt entity, the person who sold the qualifying vehicle to the person or entity using the vehicle is eligible to claim the credit, but only if the seller clearly discloses in a document to the tax-exempt entity the amount of credit.

What makes you think that you qualify as a tax-exempt entity (most commonly a non-profit organization)?

[Boo]

Originally Posted by pewd

that is a question best answered by a tax accountant.
i presonally wouldn't fill in my tax return based on advice received from strangers on the 'net.

I agree. Talk to your accountant, or call the IRS on a no-name basis, or run Turbo Tax or other tax prep software. I'm going to ask my own accountant, and will post his answer when I get it.

So what follows is only my offfhand opinion ... I'm not an accountant or an expert.

I suspect that you can claim the credit if you were one of the purchasers of the car, because:

1. I think who's name is on the title is irrelevant, as states' practices regarding name on title varies. For example, in some states, if you took out a car loan in order to purchase the car, it will be the lender or bank's name on the title.

2. I analogize to the situation of divorced parents and who can claim their child as a dependent. In many situations, both parents support the child and therefore the child is a dependent of both parents. But in any given tax year only one parent can claim the child as a dependent (the tax law doesn't permit both parents to claim the child as a half dependent of each). In my own case, my ex and I alternate claiming our daughter as a dependent. Last year, I claimed her. This year, my ex will claim her.

[Boo]

FYI, my tax accountant says that either co-buyer (but not both) can claim the tax credit. But I still think you should check with your own tax accountant or the IRS.

[maychau]

Originally Posted by Boo

FYI, my tax accountant says that either co-buyer (but not both) can claim the tax credit. But I still think you should check with your own tax accountant or the IRS.

thanks, Boo.
You guys are awesome!!!