Is there a form or document that needs to be filled out for 2012 tax preparation next year? or Is it as simple as showing proof of purchase to my CPA? Thanks,
just show it to your CPA. there is a form for the alternative fuel vehicle credit; he/she looks up what kind of car it is and punches in the right credit on that form.
Your avatar doesn't show what state you're in. But SOME states (in addition to Fed Tax Credit) actually will rebate you an incentive check, simply for buying the PiP. Those rebate forms are different from tax forms. btw ... The Feds have ruled that those incentive checks are not held to be taxable income. So - check your local state's rules for incentive money too. .
Don't get your hopes too high though, when I got bought 2006 Prius, my tax credit was zero dues to owing AMT.
That's the best news I've heard this week! (other than finding out my $8 DMV check was cashed Monday)
Anyone else heard the $2500 is not refundable? Meaning if you owe $100 in tax you will not receive the other $2400 back in refund. I for one am not taking any chances so I bumped my exemptions to make sure I owe above and beyond the $2500.
You can only claim this tax credit up to your tax liability. Tweaking your withholding does not effect how much tax you owe (your tax liability), just when you pay it (over the year taken out of your paychecks as withholding, or when your file your tax return).
I don't have a PIP, but I believe this is similar to the $15,000. tax credit I got from installing our solar panels two years ago. I can keep rolling over the balance for the next few years until it is all used. There is a limit, but it is a few years down the road. Btw, I should be getting an EV to use of some of our electric. We are only using about about 40% of what we are producing. PA P
Federal Tax Credits for Plug-in Hybrids Purchased in or after 2010 has this encouraging line in it: The referenced http://www.irs.gov/pub/irs-pdf/f8936.pdf says that the credit cannot be carried forward; unused credit is lost.
If I read this right, you would only care about losing the carry-forward if you owe less than $2500 in federal tax in 2012. So I figure most folks who could buy a PiP would probably have enough income to get full value (unless perhaps your taxes have a business loss sort of thing going on...)
