Toyota just hit 60000 on the prius Tax credit bye bye???

I purchased a used 05 Prius a couple of weeks ago.

I assume the credit only applies to NEW vehicles and not used ones ?

 

<div class='quotetop'>QUOTE(Mark Whaley @ Jun 7 2006, 10:46 AM) [snapback]267327[/snapback]</div>

Yep.

It'll be interesting to see if Toyota hybrid sales plummet after 9/30/06 (assuming it doesn't get extended) or eventually then credit reaches 0. It's a huge opportunity for Honda, Ford, GM and anyone else coming out w/qualifying hybrids.

 

well, not to get too cocky, but I'm guessing it'll have little impact on demand. The credit incentive isn't really the only thing selling people on these cars.

 

<div class='quotetop'>QUOTE(cwerdna @ Jun 7 2006, 01:51 PM) [snapback]267331[/snapback]</div>

What will also be interesting is, if the credit is extended beyond the limit of 60,000 vehicles, if we'll hear a loud protest from Ford.

 

<div class='quotetop'>QUOTE(bsd43 @ Jun 7 2006, 08:36 AM) [snapback]267244[/snapback]</div>

Goddess bless PriusChat and all who sail on her!

 

<div class='quotetop'>QUOTE(Rufaro @ Jun 7 2006, 05:48 AM) [snapback]267132[/snapback]</div>

What papers might those be? I had checked the website before and printed out everything that seemed to apply to the 2006. But when I read through it, any paperwork that even remotely appeared to be needed applied to the 2005 tax deduction, not the 2006 tax credit. I don't see anything on the Toyota website that indicates it needs to be completed/filed with an IRS form 1040 for the 2006 tax credit.

Like I said, I figure it's going to be one of those things where you complete an IRS-supplied schedule with the pertinant information from the sales receipt, then use that information to take the tax credit on the form 1040. And then the only required information is probably going to be:

1. Applicable hybrid model.
2. Dealer's name.
3. Date of sale.

I seriously doubt the IRS will want anything else (not even the VIN). It's the same logic that applies to the IRS not requiring financial statements be attached to any form 1040. You keep the financial statements and transfer the amounts to the applicable IRS schedule(s).

 

<div class='quotetop'>QUOTE(bsd43 @ Jun 7 2006, 11:36 AM) [snapback]267244[/snapback]</div>

Unfortunately, I don't think this is true.
According to the H&R Block web page, the exemptions that are being extended are the Child Tax Credit, Dependent Care Credit, education credits and the credit for the elderly and disabled. There is nothing in there for hybrid tax credits.

Any tax experts out there that can confirm this or say that it is incorrect? I hope that I'm wrong because I'm probably going to get hit by the AMT and will therefore not get the tax credit

 

<div class='quotetop'>QUOTE(rudiger @ Jun 7 2006, 03:23 PM) [snapback]267517[/snapback]</div>

Below is a snippet from http://www.toyota.com/prius/tax.html the Certification Letters and IRS Acknowledgment Letters are there as PDF files.

How to Claim a Federal Tax Deduction

The Internal Revenue Service (IRS) requires that purchasers retain normal proof of purchase documentation as well as the Toyota Certification letter and Internal Revenue Service Acknowledgement letter as substantiation for the deduction.
For printable copies of both letters, click the icons below.
For further information from the IRS, see the IRS News Releases of February 8, 2006; October 14, 2004; October 6, 2003; August 12, 2003; and Revenue Procedure 2002-42.
Toyota Certification Letter - Model Years 2001, 2002 and 2003
Toyota Certification Letter - Model Year 2004
Toyota Certification Letter - Model Year 2005
Toyota Certification Letter - Model Year 2006
IRS Acknowledgement Letter - Model Years 2001, 2002 and 2003
IRS Acknowledgement Letter - Model Year 2004
IRS Acknowledgement Letter - Model Year 2005
IRS Acknowledgement Letter - Model Year 2006

<div class='quotetop'>QUOTE(ntender @ Jun 7 2006, 03:26 PM) [snapback]267518[/snapback]</div>

And, from the HR Block document cited by someone above:

AMT Relief - Personal Credits - The provision that allows most nonrefundable personal tax credits to offset regular tax and AMT is now permanent. Temporary provisions that protected Child Tax Credit, Dependent Care Credit, education credits and the credit for the elderly and disabled from the AMT were set to expire after 2005.

The way I am reading this is that the named credits constitute a list of examples, showing only the ones that will affect most people for purposes of this summary document.

Of course, I could be wrong....Naaah....Couldn't happen! :lol:

 

<div class='quotetop'>QUOTE(bsd43 @ Jun 7 2006, 11:36 AM) [snapback]267244[/snapback]</div>

I wish. My understanding is that the hybrid tax credit is not a "nonrefundable personal tax credit."

My understanding is that I'll need to settle for whatever portion of that credit I can use below the (slightly raised) AMT ceiling. Not that I'm complaining...

 

<div class='quotetop'>QUOTE(crichman @ Jun 7 2006, 08:36 PM) [snapback]267576[/snapback]</div>

We've got plenty of cops on PC, lots of scientists...ANY ACCOUNTANTS HERE??? :lol:

 

<div class='quotetop'>QUOTE(crichman @ Jun 7 2006, 05:36 PM) [snapback]267576[/snapback]</div>

Well, I don't claim to be a tax expert, but I did get an accounting degree from school that I'm not using and was a tax accountant back a few years...

But as I read it, the Hybrid Tax Credit is a nonrefundable Personal Tax Credit. The other kind is "refundable credits", an example of which is the Earned Income Credit, ones that are give you money back even if the "credit" is bigger than your "total tax".

Thompson Tax Watch says:

 

<div class='quotetop'>QUOTE(bsd43 @ Jun 7 2006, 05:55 PM) [snapback]267593[/snapback]</div>

POOP! :angry:

 

<div class='quotetop'>QUOTE(Rufaro @ Jun 7 2006, 06:37 PM) [snapback]267523[/snapback]</div>

That's nice. Where's the section on 'How to Claim a Federal Tax Credit'?

If you actually print (and read) any of the listed documents (including the ones for MY2006), you'll see that they say absolutely nothing about that.

 

<div class='quotetop'>QUOTE(crichman @ Jun 7 2006, 08:36 PM) [snapback]267576[/snapback]</div>

If you have to worry about AMT, you likely have had paid in more in taxes than the amount of credit, so I wouldn't worry about wasting the credit, if I were you.

 

<div class='quotetop'>QUOTE(jonlink @ Jun 7 2006, 06:36 PM) [snapback]267621[/snapback]</div>

I do not know. I got married and I got stupid. :blink: I used to do my own taxes, program my vcr, change my flat tires (i.e., I knew where to put the damn jack, not to mention how to put the m*****f***er together). I have not got there merest hint of a clue what the hell the amt is, really, except that it is maybe not a great thing? Anyway, this article seems to indicate that maybe we of the dreaded amt just might still get the full credit--but I expect not, 'cause it would mean a new tax break for someone other than the extremely wealthy... <_<