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Tax credit give-back?

Discussion in 'Gen 2 Prius Main Forum' started by magicguy, Nov 6, 2005.

  1. magicguy

    magicguy Junior Member

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    Location:
    West Point, NY
    Vehicle:
    2006 Prius
    Anyone know what happens if you sell your Prius? I heard you have to give back some of your tax deduction if you sell it within three years, but I can't find any info that says this officially.

    What tax forms do I have to fill out?

    How does the 'give back' work?

    Has anyone actually done it?

    Thanks for your time,
    John
     
    #1 magicguy, Nov 6, 2005
  2. Kiloran

    Kiloran New Member

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    No. You heard wrong.
    1040
     
    #2 Kiloran, Nov 6, 2005
  3. Bill Merchant

    Bill Merchant absit invidia

    Joined:
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    Location:
    USA | Oregon | Portland area | 97004 |
    Vehicle:
    2007 Prius
    No one has "done it", the 2006 tax thing, that is, since it's still 2005. If you get a tax credit for a Prius purchase in 2006, you can claim it on your taxes filed in January 2007...

    While the Prius is technologically advanced, it still can't time travel...
     
    #3 Bill Merchant, Nov 6, 2005
  4. tag

    tag Senior Member

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    The "typical" sale or other disposition within three years does not result in a recapture event.

    § 1.179A–1 Recapture of deduction for qualified clean-fuel vehicle property...
    ...
    (b) Recapture event
    (1) Qualified clean-fuel vehicle property
    (i) In general.
    A recapture event occurs if, within 3 full years from the date a vehicle of which qualified clean-fuel vehicle property is a part is placed in service, the property ceases to be qualified clean-fuel vehicle property.

    Property ceases to be qualified clean-fuel vehicle property if—
    A) The vehicle is modified by the taxpayer so that it may no longer be propelled by a clean-burning fuel;
    B) The vehicle is used by the taxpayer in a manner described in section 50(b);
    C) The vehicle otherwise ceases to qualify as property defined in section 179A( c ); or
    D) The taxpayer receiving the deduction under section 179A sells or disposes of the vehicle and knows or has reason to know that the vehicle will be used in a manner described in paragraph (b)(1)(i) (A), (B), or ( C ) of this section.

    (ii) Exception for disposition. Except as provided in paragraph (b)(1)(i)(D) of this section, a sale or other disposition (including a disposition by reason of an accident or other casualty) of qualified clean-fuel vehicle property is not a recapture event.
     
    #4 tag, Nov 7, 2005
  5. Kiloran

    Kiloran New Member

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    :D UDAMAN!
     
    #5 Kiloran, Nov 7, 2005
  6. magicguy

    magicguy Junior Member

    Joined:
    Nov 2, 2005
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    Location:
    West Point, NY
    Vehicle:
    2006 Prius
    Thanks for all your posts.

    So if I'm reading this right, when I sell my 2004 Prius (to get a 2006!), I don't have to do anything or give anything back from my 2004 tax deduction unless I know the car won't be used as a hybrid vehicle.

    That helps a lot. :)

    John
     
    #6 magicguy, Nov 7, 2005
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