'06 Credit Available even if you take it in '05?

I don't need to.
The dealer has agreed to honor his commitment. B)

 

Not specifically a response to this topic...although I would not do the two contract thing.

I am curious if anyone's dealers are open on 1/1/06??? Both of the ones I have been dealing with thus far are open on 1/1/06 AND they are open on Christmas day. Interesting!

 

I would not do that. As near as I can tell the IRS does not have a sense of humor. I think it is surgically excised when the sign up. Don't mess with the revenuers.

 

I just called the IRS to ask if I could pay and complete the paperwork for the 06 prius in 05 and pick up the car after January 06. I was told that the paperwork and payment for the car could be done in 2005, as long as the car is not put into service until 2006 you will get the tax credit. I asked how they would know this information and he said that they are able to check dealership records on when the the vehicle is put into service. I may just ask the dealership to write a letter confirming this information.

 

Better make them guarantee it.
I also checked with the IRS.
"Put into service" means "first used".
In IRS terms that might mean accepting possession of the car or any piece of it, ie keys,...
Be very careful agreeing to this kind of arrangement.

 

So how do you plan to do the paperwork and payment to avoid any misintepretation by the IRS?

 

I'm paying and doing the paperwork on January 02, 2006.
No possibility of IRS misinterpretation. B)

 

This does seem like the best solution. So you probably cannot get the car until the 3rd if they have to complete the registration etc.

 

They can provide temporary or online registration.
I'll be driving the car off the lot on 01/02.

 

I didn't know you were getting red?... I missed that!.... Cool....
atl least you can salivate knowing "when" you can pick it up!.... I'm still in the nebulous

 

My dealer's closed 1/1.

 

If your dealer backs out of a verbal commitment and sells your car to the next person on the list rather than waiting the 1-2 weeks till January, make it clear to him that it will reflect badly in your survey evaluation.
It wouldn't hurt to mention that you are active on a very large internet message board devoted to the Prius.

 

You know, I've been searching for info in the irs.gov website and have found no mention of any tax credit regarding the 2006 Prius. I have found only the 2005 tax deduction info.
I would like to see it in black and white from the irs.
I too would like to get the credit but the car has arrived on the lot waiting to be picked up.
What to do? I want to talk with sales and arrange the deal to be done 1/2/06 but have it paid for this weekend. Buy it without putting it into service.
But still this irs thing bugs me... I want to see it and print it out.
thanks,
olcorral.

 

I just spoke with IRS hybrid specialist for the second time. He told me that no new written info has come out for 2006 on how the 2006 tax credit will be handled. He gave me the info for the 2005 tax deduction which is you get the 05 deduction in the year that the vehicle is put into service. You are not required to show any documentation.

My salesperson seems to think that if you pay for the car and do the paperwork in 05 and then register the car in 06 you would be find. However he is willing to wait and do all the paperwork and payment on 1/2/06. I will then take possession of a 2006 sliver pkg 5 prius on 1/4/05 after the car has been registered.

Hope this helps.

 

I know that's a typo ("find" instead of "fine") but it's kind of funny considering what's been discussed in this thread. :lol:

....or did the salesperson really intend to say, "you would be fined"?

 

OK.
I just spoke with a good friend of mine who is a professional financial/tax planner.
He said that, as ordinary citizens, the IRS would likely not hold us to as high a standard a say a CPA, et. al.

There are articles published on the internet by reasonably reliable organizations that say that purchasing in 2005 and deferring possession until 2006 is ok.

i.e. from New Energy-Efficiency Home and Vehicle Tax Credits:
"When is it available? The new tax credit is for vehicles “placed in service†beginning January 1, 2006—but because there is a waiting list for many hybrids, note that you can get the tax credit if you arrange to purchase the vehicle this year as long as you do not take possession of the vehicle until January 1, 2006. "

My friend's advise was that you'll be safest if you do all your processing in 2006.
He added, that if you do process the sale in 2005, print out the above article (and others you find) and make sure you do not take possession of any part of the vehicle until 2006 (keys, owner's manual, etc.).

(Thanks, P.) B)

 

Well I think you discovered better information than I could get from the IRS.

I am very excited that this is happening as soon as it is. For me waiting until 1/02 is not a big deal considering as of yesterday I thought I would be waiting until April.
Yesterday I called one of the largest dealerships in our area and they had the exact car I had on order since mid September available . I was told this dealership gets about 40 priuses/month. So my advice to anyone who is tired of waiting call around to some of the larger dealerships. You might get lucky. I live in MA.

 

So does this mean the IRS would consider that I took possession if I take my 06 for a test drive in 05 and then leave it on the lot until January 2nd?

The dealer put the date of transfer on the Licensing paperwork as 12/10 when I went in to get a start on the paperwork and the car hadn't even come in yet! I hope that with a letter from them saying I didn't take possession until January ( that I'll be ok too.