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How does tax credit work?

Discussion in 'Gen 2 Prius Main Forum' started by ddepriest, Feb 17, 2006.

  1. ddepriest

    ddepriest New Member

    Joined:
    Jan 16, 2006
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    Are there any tax savvy folks out there who know exactly how to claim the $3150 tax credit? How do we prove we've bought the Prius? Will there be a special IRS form?

    Thanks in advance for anyone who can help.
     
  2. rwlade

    rwlade Dr. Bob

    Joined:
    Apr 5, 2005
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    Location:
    Cape Coral FL
    Vehicle:
    2005 Prius
    I just got an email from my CPA. I had sent the "letter" over to her and now she needs purchase document showing cost, sales tax etc. Guess there is not a special IRS form.

    The "letter" mentioned above was downloaded from this forum (somewhere, don't know where 'because it's been 8 months since I purchased the car).

    Hope this helps
     
  3. jayway

    jayway New Member

    Joined:
    Mar 2, 2005
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    Location:
    SF CA
    The $3150 tax credit is for cars put into service in 2006, you must hold the car for 3 years. those of us that put cars into service in 2005 get a tax deduction of $2000, not nearly as good. If the car is not held for three years you must claim the sale in your next tax year.