$3,150 Tax Credit

<div class='quotetop'>QUOTE(Weinerneck @ Aug 9 2006, 06:23 AM) [snapback]300104[/snapback]</div>

The full tax credit goes to anyone purchasing a Prius on or before Sept. 30. The 60,000 limit has to do with the quarter in which the manufacturer reaches that number of hybrid sales. I believe the tax credit is still good for quarter immediately following that, but begins phasing out in the quarter after that.

 

And remember that ordering is not the same as purchasing. I think that might trip up a few people.

 

I'm guessing that TaxCut and TurboTax software we get next January will ask the question... Did you purchase a hybrid vehicle in 2006?

Then go on to ask for the car type, was it new, maybe the VIN number, and the purchase date before applying the credit...

Do you all think this is how it will be, or does someone have another idea?

 

<div class='quotetop'>QUOTE(daronspicher @ Aug 9 2006, 08:03 AM) [snapback]300127[/snapback]</div>

If memory serves, I sorta remember being asked a hybrid question with last years' version of TaxCut. I think it will definitely be included.

 

<div class='quotetop'>QUOTE(Weinerneck @ Aug 9 2006, 07:23 AM) [snapback]300104[/snapback]</div>

I am thinking of doing the same thing, the thing is, that I'll have to pay $2000 in taxes for the new car, so the gap is more like $4000-$5000 for me, not sure if it's worth it.

 

<div class='quotetop'>QUOTE(Dragonfly @ Aug 9 2006, 07:34 AM) [snapback]300107[/snapback]</div>

I don't understand this.

What if Toyota reached 60,000 sold in, say June, but I bought in July. That's before Sept 30, but after the quarter in which the 60,000 sold threshold was reached. What am I missing?

 

They reached 60,000 in May (or June). The second quarter, at any rate. We have until the end of the third quarter (until 09/30/06) to take delivery to get the full credit.

This site:
http://www.toyota.com/prius/tax.html

has the details.

 

<div class='quotetop'>QUOTE(Gadgety Bourgeois Type @ Aug 9 2006, 11:49 AM) [snapback]300212[/snapback]</div>

There is a 1 full quarter grace period after Toyota's QUARTER that it hits 60k. That QUARTER was second quarter. Thus third quarter (the grace period) is when the deadline ends. Sept. 30th.

 

See this government site for details.

 

<div class='quotetop'>QUOTE(Dragonfly @ Aug 9 2006, 04:34 AM) [snapback]300107[/snapback]</div>

I believe the terminology is "put in service". IMO, that means you must have taken physical delivery from the dealer, paperwork signed and "money" exchanged. Obviously, DMV paperwork might not get filed until the next business day but in any case it would show the actual sale date of 09/30/2006 or earlier.

 

is this tax credit still available until sept 30th for the 2007 prius, or only 2006's?

 

Here's the kicker:

"The benefit of the hybrid vehicle tax credit will also be substantially reduced or eliminated if the individual purchaser is subject to the federal alternative minimum tax (AMT)."

So many people are hit with the AMT that they will not be able to realize any tax benefit. Check with you tax accountant.

Sorry, Tweldon.

 

<div class='quotetop'>QUOTE(sbarrack @ Aug 12 2006, 04:06 PM) [snapback]302230[/snapback]</div>

As of 7/11/2006 the 2007 Prius was not listed as an eligible vehicle.

 

This site may answer your questions about the tax credit http://www.fueleconomy.gov/feg/tax_hybrid_new.shtml