Two Priuses - one tax credit

suefourmet · 02-21-2008, 06:22 PM

This is going to sound confusing, but..

I purchase a 2007 Prius the end of March 2007. One month later, that Prius was totaled in an accident. After the insurance pay-off I then purchased another 2007 Prius in early May, 2007. Of course I'd rather use the March date rather than the May date in applying for the the tax credit, but I'm not at all sure about the legalities. Any ideas?

thanks,

Sue

RobH · 02-21-2008, 06:57 PM

Morally I'd say you bought one car in March. Legally, I'd say you bought two cars. Lots of people have multiple cars, so that's nothing unusual. Before claiming the second one, perhaps you should consult a tax advisor.

JimN · 02-21-2008, 07:16 PM

Quote:

Originally Posted by suefourmet

This is going to sound confusing, but..

I purchase a 2007 Prius the end of March 2007. One month later, that Prius was totaled in an accident. After the insurance pay-off I then purchased another 2007 Prius in early May, 2007. Of course I'd rather use the March date rather than the May date in applying for the the tax credit, but I'm not at all sure about the legalities. Any ideas?

thanks,

Sue

IMO there is no question. There are no rules (that I know of) regarding length of service. You bought two cars and put both in service during the period the credit was valid. You can claim two credits. Whether or not you receive the full benefit is another story. Read the directions on the back of the form.

ksstathead · 02-21-2008, 07:22 PM

I agree w/ Jim. I'm not an expert on the 8910 credit form, but I've done tax returns for a living for many years. It reads to me, at a glance, that you were the original user of both cars and if you have enough tax liability and if your tentative minimum tax is low enough, you'd get both credits. Each purchase would be computed at its phaseout % (50% credit in March, 25% credit in May).

02-21-2008, 06:22 PM	#1
suefourmet Junior Member Join Date: Apr 2007 Posts: 10 My Car: Model: Package: Thanks: 0 Thanked 0 Times in 0 Posts Friends: 0	Two Priuses - one tax credit This is going to sound confusing, but.. I purchase a 2007 Prius the end of March 2007. One month later, that Prius was totaled in an accident. After the insurance pay-off I then purchased another 2007 Prius in early May, 2007. Of course I'd rather use the March date rather than the May date in applying for the the tax credit, but I'm not at all sure about the legalities. Any ideas? thanks, Sue

02-21-2008, 06:57 PM	#2
RobH Senior Member Join Date: Sep 2006 Location: Sunnyvale, California Posts: 674 My Car: 2006 Prius Model: Package: #8 Thanks: 23 Thanked 46 Times in 29 Posts Friends: 0	Re: Two Priuses - one tax credit Morally I'd say you bought one car in March. Legally, I'd say you bought two cars. Lots of people have multiple cars, so that's nothing unusual. Before claiming the second one, perhaps you should consult a tax advisor.

02-21-2008, 07:22 PM	#4
ksstathead Senior Member Join Date: May 2007 Location: Kansas Posts: 188 My Car: Other Non-Hybrid Model: N/A Package: N/A Thanks: 95 Thanked 9 Times in 9 Posts Friends: 0	Re: Two Priuses - one tax credit I agree w/ Jim. I'm not an expert on the 8910 credit form, but I've done tax returns for a living for many years. It reads to me, at a glance, that you were the original user of both cars and if you have enough tax liability and if your tentative minimum tax is low enough, you'd get both credits. Each purchase would be computed at its phaseout % (50% credit in March, 25% credit in May).