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Question about tax rebate

Discussion in 'Prius Tax Credit Discussion' started by yarzy, Nov 21, 2006.

  1. yarzy

    yarzy New Member

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    I have a question about the tax rebate. Due to some events in my family's life, I am forced to sell my 2 month old Prius. Now, my parents are very interested in the car so they might buy it from me, but how does the tax credit work if I trade the car in? Does it just go away or will I still get the credit even if I bought it before Oct 1st? I am not sure how this will all work...
     
    #1 yarzy, Nov 21, 2006
  2. DaveinOlyWA

    DaveinOlyWA 3rd Time was Solariffic!!

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    you bought it, you get the credit. no "length of ownership" required as long as you are not a dealer and you put the vehicle in service before sept 30 of this year.
     
    #2 DaveinOlyWA, Nov 21, 2006
  3. Walker1

    Walker1 Empire

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    <div class='quotetop'>QUOTE(DaveinOlyWA @ Nov 21 2006, 09:28 AM) [snapback]352461[/snapback]</div>
    To your knowledge does that mean there should be a line in the 1040A tax form for energy credit?
     
    #3 Walker1, Nov 21, 2006
  4. eagle33199

    eagle33199 Platinum Member

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    I don't think they've released the forms yet for 2006, have they? at any rate, i believe there's another form you have to fill out, along with the form for AMT to see how much of the credit you qualify for, which then goes into the 1040 somewhere.
     
    #4 eagle33199, Nov 21, 2006
  5. McShemp

    McShemp New Member

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    <div class='quotetop'>QUOTE(DaveinOlyWA @ Nov 21 2006, 08:28 AM) [snapback]352461[/snapback]</div>
    From here:

    "IRS has yet to provide guidance on using credits to reduce alternative minimum tax liability and rules relating to recapture of credit (e.g., if the vehicle is re-sold)."

    You also know - for the Toyotas - the full credit is available if you put the vehicle in service before Sept. 30 of this year. It's 50% for the next two quarters and 25% for the next two quarters after that. Then it's gone.
     
    #5 McShemp, Nov 21, 2006
  6. Ms. Piggy

    Ms. Piggy New Member

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    <div class='quotetop'>QUOTE(eagle33199 @ Nov 21 2006, 11:48 AM) [snapback]352530[/snapback]</div>
    First versions of the 2006 tax forms are now available from the IRS web site (www.irs.gov). You must use form 1040 (long form) to claim the hybrid vehicle tax credit.
     
    #6 Ms. Piggy, Nov 22, 2006
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