2005 Prius Ok'd by IRS for Deduction, but no other hybrids?

Hmm, just looked at IRS site, seems you are right!

Current certifications can be seen at http://www.irs.gov/newsroom/article/0,,id=...=104549,00.html.

However, article http://www.irs.gov/newsroom/article/0,,id=...=120044,00.html suggests the 2004 Insight didn't get certified until Jan 2004. So, I would guess the 2005 would get certified by the time anyone files for it.

 

Re: 2005 Prius Ok'd by IRS for Deduction, but no other hybri

does that $2000 deduction also apply to those who bought or took delivery of their 2004 Prius this year? (as opposed to the supposedly $1500 deduction for this year since it was $2000 last year)

 

Re: 2005 Prius Ok'd by IRS for Deduction, but no other hybri

According to a search I ran on the IRS website this will apply to anyone who has bought their Prius in 2004.
Here is a clipping of some of the text in that article:
"Under the recently signed Working Families Tax Relief Act of 2004, the clean-burning fuel deduction is up to $2,000 for certified vehicles first put into service in 2004 and 2005. The deduction will be limited to $500 for vehicles placed in service in 2006 and no deduction will be allowed after that year."

 

Re: 2005 Prius Ok'd by IRS for Deduction, but no other hybri

What if you leased the Prius can I still get deduction? It shouldnt matter Right?

 

The law specifically allows the deduction only to those who purchased the car, not those those who leased it.

 

the tax deduction was changed from the 1500 to 2000 for all purchases of the Prius. so basically, the 1500 rebate never was as it was changed before anyone had a chance to claim it.

 

Re: 2005 Prius Ok'd by IRS for Deduction, but no other hybri

Well Thats not fair ! I want my deduction!

 

Then buy the car! There's still time. Might want to check if buying out a new lease would qualify though. You probably would not be considered the original owner.

 

As I often tell my daughter, life is not fair.

 

2005 Toyota Prius Certified for Clean-Fuel Deduction;
New Law Restores Full Deduction Amount for 2004 and 2005

IR-2004-125, October 14, 2004

WASHINGTON — The Internal Revenue Service has certified the Toyota Prius for model year 2005 as being eligible for the clean-burning fuel deduction. The certification means taxpayers who purchase this vehicle new may claim a tax deduction of $2,000 on Form 1040.

Federal tax law allows individuals to claim a deduction for the incremental cost of buying a motor vehicle that is propelled by a clean-burning fuel. By combining an electric motor with a gasoline-powered engine, these hybrid vehicles obtain greater fuel efficiency and produce fewer emissions than similar vehicles powered solely by conventional gasoline-powered engines.

Under the recently signed Working Families Tax Relief Act of 2004, the clean-burning fuel deduction is up to $2,000 for certified vehicles first put into service in 2004 and 2005. The deduction will be limited to $500 for vehicles placed in service in 2006 and no deduction will be allowed after that year.

The one-time deduction must be taken in the year the vehicle is originally used. The taxpayer must be the original owner. Individuals take this benefit as an adjustment to income on Form 1040. They do not have to itemize deductions on their tax returns to claim it.

The amount of the deduction for the 2005 model year Prius was set after the manufacturer, Toyota Motor Sales, U.S.A., Inc., documented for the IRS the incremental cost related to the vehicle’s electric motor and related equipment.

The IRS previously certified the Toyota Prius for model years 2001, 2002, 2003 and 2004. The IRS also previously certified the Honda Insight for model years 2000, 2001, 2002, 2003 and 2004 and the Honda Civic Hybrid for model years 2003 and 2004.



Link: http://www.irs.gov/newsroom/article/0,,id=...=130146,00.html

 

You are not going to get $2,000 back.

You are entitled to claim a $2,000 deduction off your income. Depending on your tax bracket, it will be a maximum net savings of $760 if you are in the highest tax bracket, assuming that the current rate for that bracket is still at 38% (I am too lazy to look it up right now).

 

i dont think anyone was under the impression that they would receive $2000 from the government. it is a TAX DEDUCTION not a TAX CREDIT

 

I'm not so sure about that Dave. There have been SO many places where the word 'credit' was used, including magazine reviews, etc, that there may be a lot of people who think it is a credit. Hopefully no one calculated their ability to afford the car based on getting $2K off their taxes owed.

 

welll i suppose. i guess i should know better than to think that anything is obvious. some of the things i come across at work are totally unreal.

yesterday i went to burger king to get something to eat. the total was $4.80 so i gave the girl a five and five pennies. at first she gave me back two dimes and i said that wasnt right.

well she conferred with her co worker (couldnt hear what they were saying) and then gave me 75 cents!!

 

Re: 2005 Prius Ok'd by IRS for Deduction, but no other hybri

I purchased 2005 Prius in October 2004. Is there some kind of form I need to prove purchase to IRS. Anyone know?

 

no there isnt. you will need it if you get audited though. shouldnt be too tough to prove you had the car even if you have sold it by then