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Electric Car Tax and AMT

Discussion in 'Prius Tax Credit Discussion' started by goody, Feb 15, 2007.

  1. goody

    goody Junior Member

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    My tax preparer said I can claim an electric car tax deduction (form 8834) along with the tax credit for the Prius, I don’t believe the pries qualifies for the electric car tax deduction and even if did I don’t think the IRS would allow both. Does any one know anything about the electric car tax?

    Also if you are on the threshold of the AMT could you avoid it by funding a traditional IRA?

    If you are hit with the AMT is the amount you lose on the credit a set amount or does the credit go down as the income goes up?
     
    #1 goody, Feb 15, 2007
  2. JimN

    JimN Let the games begin!

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    <div class='quotetop'>QUOTE(goody @ Feb 15 2007, 09:45 PM) [snapback]391231[/snapback]</div>
    How can I say this politely? Your tax preparer is at best incompetant. You can't claim an electric car credit for the Prius because it is NOT an electric car. If you bought an electric car then follow the instructions on form 8834. How many other bogus deductions and/or credits has he suggested you take?

    Do yourself a favor, go to www.taxact.com and download the free program so you can get a more accurate picture of your tax liability. Then do your preparer a favor by telling him about the site. He might learn something if he uses it.
     
    #2 JimN, Feb 15, 2007
  3. verine2116

    verine2116 New Member

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    <div class='quotetop'>QUOTE(JimN @ Feb 15 2007, 07:23 PM) [snapback]391248[/snapback]</div>

    But isn't it true that you can't get the federal tax credit is you pay the AMT?
     
    #3 verine2116, Feb 16, 2007
  4. JimN

    JimN Let the games begin!

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    <div class='quotetop'>QUOTE(verine2116 @ Feb 16 2007, 09:29 AM) [snapback]391389[/snapback]</div>
    No. I don't believe that is an accurate statement. The credits on lines 47-55 are going to reduce the hybrid credit. Form 6251 (Alternative Minimum Tax) is used to calculate the Tentative Minimum Tax. Just looking at the forms I don't see where the AMT has a direct influence on the credit.

    Many people in this forum are not subject to AMT but have lost at least some of the credit. I don't recall hearing from anyone who is subject to AMT so we don't have a score on that yet.
     
    #4 JimN, Feb 16, 2007
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