2005 Prius Ok'd by IRS for Deduction, but no other hybrids?

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by Danny, Oct 18, 2004.

  • by Danny, Oct 18, 2004 at 2:11 PM
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    Depending on how you read this, it might be saying that the HCH and the Insight have not been added to the 2005 tax deduction list. Either that or the IRS hasn't made a decision one way or the other.

    http://www.wastenews.com/headlines2.html?id=1098113577

    IRS certifies Toyota Prius for clean-burning fuel deduction

    Oct. 18 -- The Internal Revenue Service has certified the Toyota Prius for model year 2005 as being eligible for the clean-burning fuel deduction.
    The certification means taxpayers purchasing the vehicle may claim a $2,000 deduction on their federal income tax. They must take the deduction in the year the vehicle is originally used.

    The IRS previously certified the Prius for model years 2001 through 2004, the Honda Insight for model years 2000 through 2004 and the Honda Civic Hybrid for model years 2003 and 2004.
    Danny, Oct 18, 2004
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Comments

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by Danny, Oct 18, 2004.

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  1. DanMan32
    DanMan32, Oct 19, 2004
    #2
  2. eak354
    Re: 2005 Prius Ok'd by IRS for Deduction, but no other hybri

    does that $2000 deduction also apply to those who bought or took delivery of their 2004 Prius this year? (as opposed to the supposedly $1500 deduction for this year since it was $2000 last year)
    eak354, Oct 20, 2004
    #3
  3. Hybred
    Re: 2005 Prius Ok'd by IRS for Deduction, but no other hybri

    According to a search I ran on the IRS website this will apply to anyone who has bought their Prius in 2004.
    Here is a clipping of some of the text in that article:
    "Under the recently signed Working Families Tax Relief Act of 2004, the clean-burning fuel deduction is up to $2,000 for certified vehicles first put into service in 2004 and 2005. The deduction will be limited to $500 for vehicles placed in service in 2006 and no deduction will be allowed after that year."
    Hybred, Oct 20, 2004
    #4
  4. m6scott
    Re: 2005 Prius Ok'd by IRS for Deduction, but no other hybri

    What if you leased the Prius can I still get deduction? It shouldnt matter Right?
    m6scott, Oct 28, 2004
    #5
  5. IsrAmeriPrius
    The law specifically allows the deduction only to those who purchased the car, not those those who leased it.
    IsrAmeriPrius, Oct 28, 2004
    #6
  6. DaveinOlyWA
    the tax deduction was changed from the 1500 to 2000 for all purchases of the Prius. so basically, the 1500 rebate never was as it was changed before anyone had a chance to claim it.
    DaveinOlyWA, Oct 28, 2004
    #7
  7. m6scott
    Re: 2005 Prius Ok'd by IRS for Deduction, but no other hybri

    Well Thats not fair ! I want my deduction! :cry:
    m6scott, Oct 28, 2004
    #8
  8. DanMan32
    Then buy the car! There's still time. Might want to check if buying out a new lease would qualify though. You probably would not be considered the original owner.
    DanMan32, Oct 28, 2004
    #9
  9. IsrAmeriPrius
    As I often tell my daughter, life is not fair.
    IsrAmeriPrius, Oct 28, 2004
    #10
  10. TonyPSchaefer
    Okay, Dave. And/or anyone else. I have yet to see any definative proof that I will get $2000. This is as close as it gets. . .

    From the IRS site:
    The certification means taxpayers who purchase any of these new hybrid vehicles may claim a tax deduction of up to $2,000 for tax year 2003 or up to $1,500 for tax year 2004.

    Before I will believe that I'm entitled to $2,000, someone's going to have to Show me the money!!!
    TonyPSchaefer, Oct 28, 2004
    #11
  11. tag
    2005 Toyota Prius Certified for Clean-Fuel Deduction;
    New Law Restores Full Deduction Amount for 2004 and 2005

    IR-2004-125, October 14, 2004

    WASHINGTON — The Internal Revenue Service has certified the Toyota Prius for model year 2005 as being eligible for the clean-burning fuel deduction. The certification means taxpayers who purchase this vehicle new may claim a tax deduction of $2,000 on Form 1040.

    Federal tax law allows individuals to claim a deduction for the incremental cost of buying a motor vehicle that is propelled by a clean-burning fuel. By combining an electric motor with a gasoline-powered engine, these hybrid vehicles obtain greater fuel efficiency and produce fewer emissions than similar vehicles powered solely by conventional gasoline-powered engines.

    Under the recently signed Working Families Tax Relief Act of 2004, the clean-burning fuel deduction is up to $2,000 for certified vehicles first put into service in 2004 and 2005. The deduction will be limited to $500 for vehicles placed in service in 2006 and no deduction will be allowed after that year.

    The one-time deduction must be taken in the year the vehicle is originally used. The taxpayer must be the original owner. Individuals take this benefit as an adjustment to income on Form 1040. They do not have to itemize deductions on their tax returns to claim it.

    The amount of the deduction for the 2005 model year Prius was set after the manufacturer, Toyota Motor Sales, U.S.A., Inc., documented for the IRS the incremental cost related to the vehicle’s electric motor and related equipment.

    The IRS previously certified the Toyota Prius for model years 2001, 2002, 2003 and 2004. The IRS also previously certified the Honda Insight for model years 2000, 2001, 2002, 2003 and 2004 and the Honda Civic Hybrid for model years 2003 and 2004.



    Link: http://www.irs.gov/newsroom/article/0,,id=...=130146,00.html
    tag, Oct 28, 2004
    #12
  12. TonyPSchaefer
    Re: 2005 Prius Ok'd by IRS for Deduction, but no other hybri

    [align=center:28a55420b5]
    Well alright then.

    Happy birthday; it's your birhday.
    :birthday2:

    sing it with me:
    Happy birthday; it's your birthday.

    [/align:28a55420b5]

    Lookit, they're dancing!!
    [marq=left:28a55420b5] :D [/marq:28a55420b5]
    [marq=right:28a55420b5] :mrgreen: [/marq:28a55420b5]
    TonyPSchaefer, Oct 28, 2004
    #13
  13. IsrAmeriPrius
    You are not going to get $2,000 back.

    You are entitled to claim a $2,000 deduction off your income. Depending on your tax bracket, it will be a maximum net savings of $760 if you are in the highest tax bracket, assuming that the current rate for that bracket is still at 38% (I am too lazy to look it up right now).
    IsrAmeriPrius, Oct 28, 2004
    #14
  14. DaveinOlyWA
    i dont think anyone was under the impression that they would receive $2000 from the government. it is a TAX DEDUCTION not a TAX CREDIT
    DaveinOlyWA, Oct 28, 2004
    #15
  15. bruceha_2000
    I'm not so sure about that Dave. There have been SO many places where the word 'credit' was used, including magazine reviews, etc, that there may be a lot of people who think it is a credit. Hopefully no one calculated their ability to afford the car based on getting $2K off their taxes owed.
    bruceha_2000, Oct 29, 2004
    #16
  16. DaveinOlyWA
    welll i suppose. i guess i should know better than to think that anything is obvious. some of the things i come across at work are totally unreal.

    yesterday i went to burger king to get something to eat. the total was $4.80 so i gave the girl a five and five pennies. at first she gave me back two dimes and i said that wasnt right.

    well she conferred with her co worker (couldnt hear what they were saying) and then gave me 75 cents!!
    DaveinOlyWA, Oct 29, 2004
    #17
  17. TonyPSchaefer
    And she graduated at the top of her class!!
    TonyPSchaefer, Oct 29, 2004
    #18
  18. Ariadne
    Re: 2005 Prius Ok'd by IRS for Deduction, but no other hybri

    I purchased 2005 Prius in October 2004. Is there some kind of form I need to prove purchase to IRS. Anyone know?
    Ariadne, Mar 2, 2005
    #19
  19. DaveinOlyWA
    no there isnt. you will need it if you get audited though. shouldnt be too tough to prove you had the car even if you have sold it by then
    DaveinOlyWA, Mar 2, 2005
    #20
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