No tax credit for Tracy

You don't have to itemize but you do have to file 1040, not 1040EZ. B)

 

You are correct that it does not phase out with income.
However, those with higher incomes are more likely to find themselves losing all or part of the credit due to their AMT.

 

wow...this thread filled up quick... i was gonna read them all until i got to the bottom of the page an found that there are a million pages here.

i think everyone should get the credit too. i know someone who wont get the credit because they dont make enough money. (earned income credit, etc.) so for them getting a Prius was even more vital because of the money they will save in gas...(and that will be a lot come this summer!)

but... i think you will be happy with your decision anyway.

 

Im with tracy on this one.

If it says TAX CREDIT you should not have to be a CPA to understand the law. If they don't understand the law it should not be published until it is clarified.

End of story.

This is not the land of the free to be taken by technicalities last I checked.

 

Buying a new Prius (or any new car) is no way to "save" money.
A good quality used car that gets good mileage is far more cost effective if saving money is your goal.

 

Thanks for the helpful Govt Incentives link, Kiloran.

Believe it or not, I was looking for info on the hood bra but found this interesting discussion of the tax credit and AMT issue, in which you participated. Worth looking at.

http://priuschat.com/index.php?showtopic=14206&hl=bra

Unfortunately my mind goes numb when I read quotes like:

"(2) Personal credit.-The credit allowed under subsection (a) (after the application of paragraph (1)) for any taxable year shall not exceed the excess (if any) of -
"(A) the regular tax reduced by the sum of the credits allowable under subpart A and sections 27 and 30, over
"(B) the tentative minimum tax for the taxable year.

i) I don't have a clue what that means. If I read the referenced subsection (a) and paragraph (1) I doubt I would be any wiser. ii) Oh, yes, it means that if you pay AMT you don't get the full credit! How did we get from i) to ii)?

Actually I don't want to know the explanation: it may lie in the quotation, but I doubt many can deduce it. I just want to know the reliable answer, with which we were kindly supplied, I think.

bbianchi, we agree again; it SHOULDN'T be this way, but in fact it IS. That's why lawyers, as well as tax accountants are necessary evils (except for the ones on this Board).

C

 

Well Tracy.. I think you are a wonderful example to many who are still trapped where you used to be! You should be very proud of your accomplishments. Good principles are always rewarded.

If more had the faith and the get up and go as you, we all would have more to spend!....

Somewhere, possibly from your parents?... but somewhere, you got the fight and spirit to swim upstream to make a life for yourself in spite of the odds and cirucumstances.. I'm amazed and very proud of you!....

And your parents should be very proud of you too!.... you are quite possibly their dream come true...every parent wants thier kid to do better than they ever could.

Im sorry for all the crap you went through earlier in life, but its what forged the steel in your grit to make it today.

You will be an awesome catch for some lucky man some day..... I don't blame you for being cautious and guarding what you have built.... Good job! Make sure someone "earns" thier keep to earn your attention!

I'm glad you joined the forum and I think you are a bright spot... keep up the good work.......

----------------------
As far as the tax credit... did you buy the car under the company name?.. if so then I think the income limit is somewhere around 150K before AMT starts kicking in... but I am by no means good at taxes either!.. I use taxcut every year!...

There is enough money at stake, it may be worth at least a second opinion from another cpa... they are not all created equal.

Cheers!...

 

That's what I always thought too, Kiloran. I was ready to buy a $11,000-12,000 Camry with about 60-100K (the best buy of its sze IMHO); then I did the math to compare it with a new Prius.

To make this comparison you have to figure in the residual value after say, 5 or 10 years. The Prius retains quite a bit of value, the used Camry much less. That's a major factor.

After the 3K credit, & no excise tax in NM, the Prius came out a little cheaper than the used Camry. The Prius is much better equipped, only a bit smaller and is new with warranty. I think I figured in some gas saving assuming gas @ $2.50/gal, NOT using EPA mileage; I bet that's a low average for the next 5 years.


The Prius and its tax circumstances make it an exceptional buy in 2006. It also appears to be an extraordinary value, and I suspect is being sold at low margin until more established. In many parts of the country they just don't sell yet, like here in S NM. Santa Fe', a green city, is a different story.

I'm not going to defend my comparison: everyone has different assumptions. Had I been willing to buy another used Corolla, or a beater, the story would be different. But given the need for a larger car, the opportunity to get a new, advanced vehicle with similar cost in the long run was too good to pass up.

C

 

Seriously. my dad isnt even a CPA (he's an EA or enrolled agent) and after looking at my 2005 numbers he told me in about 5 minutes that i'd be paying AMT in 05 (and by extension in 2006, since unless i lose my job things aren't going to change that much.) its not hard to figure out, if you have a lot of deductions you'll be in AMT-land. for most people the california state income tax is enough of a federal deduction to trigger the AMT.

this is why i rushed out and got the car in 2005, so i could claim the 2005 tax deduction.

i think you need a new accountant.

 

Yea, well the problem with a rich guy is that they get dependent upon them and get even lazier as far in investing in themselves.. then if something goes wrong and he leaves, they are devestated without recourse to survive on thier own. Because of this many women put up with nasty abusive relationships because they are trapped.

Children are very unpredictable.. later you will be surprised how much of you has rubbed off! Even though she may fight it, your programming will come through! They all have to try thier own things and have thier own failures... without that, they cannot have strong convictions about "good" principles.

If you never taught her right, I would be worried, but since it sounds like you gave alot of love and were a good example, it will all come out in the wash.
Once the hormones get settled, they tend to reveal thier true self.

Similiar to a seed that stays hidden for years, and then when it sprouts, it still doesn't reveal its fruit until the chosen time... even so I bet your kid will be just fine.. just always be there for them when they crash, and help them get up "don't do it all for them"....... they will figure it out.

Sorry for changing the subject, I'm more concerned about your concerns than the rules.... after all, you did started the thread?... and sometimes the issues that are the most important are underneath the title and not the title itself......

MaggieDDD said your now part of the family, you should get the blessings as well as the scoldings! Both are for your good. Otherwise PC would be a dysfunctional family!

 

I did and do not consider my post to be inflamitory.
However, as her assertion that she was being "punished" had been repeated, and I disagreed. I thought it reasonable to challenge it.
I hold TracyBeans in relatively high regard but I am still free to hold different perspectives.

 

I was quoted a 3 - 6 month wait time in Santa Fe back in 9/04, but was able to pick up a car the following day in Gallup

Sorry of the OT -- wanted to say hi to a fellow NMcan.

 

Believe it or not, but $70,000 puts a family well into the top 25% of tax filers in 2003. In fact, it may even put a family into the top 20%. It took an Adjusted Gross Income (which is before most deductions except for things like alimony) of only $54,393 to make it into the top 25% of tax filers in 2003. The split point for the top 10% was an AGI of $94,891 in 2003.

Summary of Federal Individual Income Tax Data

 

Correct me if I'm wrong but it looks like you are comparing family (joint) income to data for individual returns.

 

Well, the data I quoted is for Tax Filers whether they be individual or married filing jointly. When married people file jointly, they are one entity to the IRS, just with different deductions and tax tables.

So, in 2003, a tax return with an AGI of $54,393 was greater than 75% of the tax returns filed. It's a wild guess, but I'd expect $70,000 to put a tax filer (whether they be an individual tax filer or married filing jointly) into the at least the top 20% category, since the split point for the top 10% is $94,891. At least it was in 2003.

 

Opps, my bad... The data is for individual returns. Hmmm, it was a slightly different link from what I had looked at a year ago. I had to find it again. I swear the one I used to use was for all tax filers. Whoops!

 

Yea.. thats on the line of what I was thinking Kiloran.... I'm wondering or rather almost willing to bet that her "business" is separated from her personal income. Based on what name she bought the car under may qualify her.

Tracy, you need to speak to someone more familiar.... don't just use a bean counter.... anyone can punch in your information into a program like taxcut or turbotax..... Many CPA's out there have either forgotten everything they ever knew or they are not qualified and bought their liscense out of a bottle of cracker jacks!...

Yours may be good... but they are not all created equal!.. get a second opinion!