Tax Credits-Criteria

Discussion in 'Prius Tax Credit Discussion' started by Brooklyn Hybrid, Dec 11, 2006.

  1. Brooklyn Hybrid

    Brooklyn Hybrid New Member

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    I purchased a 2006 Prius in May of 2006 and sold it 5+ months later.
    The question I have is : Can I still take the tax credit? I sold it because of back/comfort issues. I never purchased with the intent to sell?
    What are my IRS rights?
    Anyone
     
  2. H2OSkier

    H2OSkier Member

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    I'm guess the IRS doesn't care why you sold the car. I'd be surprised if you get any of the tax credit. I'm not a tax accountant but I did sleep at a Holiday Inn last night :)

    Ken
     
  3. miwaku

    miwaku New Member

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    Hey, you purchased during the right timefame and placed it into service. Enjoy your tax break. The person who bought it can't, but oh well...
     
  4. MegansPrius

    MegansPrius GoogleMeister, AKA bongokitty

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    <div class='quotetop'>QUOTE(miwaku @ Dec 11 2006, 12:22 PM) [snapback]360340[/snapback]</div>
    The IRS form you would need to fill out is at: http://www.irs.gov/pub/irs-pdf/f8834.pdf
    It lists the following qualifications:
    Qualified Electric Vehicle
    A qualified electric vehicle is any motor vehicle if all of the
    following apply.
    ● Manufactured primarily for use on public streets, roads, and
    highways, and has at least four wheels.
    ● Powered primarily by an electric motor drawing current from
    rechargeable batteries, fuel cells, or other portable sources of
    electrical current.
    ● Originally used by you.
    ● Acquired for your own use and not for resale.

    So far as I can tell, the IRS have not yet laid down any "minimum ownership period" guidelines. Now, since you're talking about a $3150 or so credit and your situation appears a little ambiguous (you bought, drove it a few months, sold), if you're worried about it I'd suggest you ask a tax professional. The amount of credit you could get would more than cover any tax professional's fees.
     
  5. sub3marathonman

    sub3marathonman Active Member

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    In my opinion you are entitled to the credit, although I'm not a tax professional. You have NOT however purchased an electric vehicle, and that isn't the form you need to use.

    For the Prius tax credit you must be the original purchaser and place the vehicle in service. If you've done that prior to 10/1/2006 you get $3150, after that you get half, or $1575. Since you're not a car dealer it was not purchased for resale, it was purchased for private use. Therefore you've met the requirements.

    To not take the credit would be foolish. If at some point the IRS sets some rule they can worry about it then and take it up in the tax court. You've met the rules as they apply now.
     
  6. MegansPrius

    MegansPrius GoogleMeister, AKA bongokitty

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    <div class='quotetop'>QUOTE(sub3marathonman @ Dec 11 2006, 03:06 PM) [snapback]360465[/snapback]</div>
    Yoiks! So sorry about posting the link for the wrong form. Was in a hurry. Correct link:
    http://www.irs.gov/pub/irs-pdf/f8910.pdf (though this still looks like last year's form not yet updated for 2006)
    Its qualifications :
    ● Qualified hybrid vehicle. This is a vehicle that draws propulsion energy from
    onboard sources of stored energy that are both an internal combustion or heat
    engine using consumable fuel and a rechargeable energy storage system and
    that meets certain additional requirements.
    withdrawal announcement.
    ● You placed the vehicle in service after 2005;
    ● The original use of the vehicle began with you;
    ● You acquired the vehicle for your use or to lease to others, and not for
    resale; and
    ● You use the vehicle primarily in the United States.
     
  7. ChuX

    ChuX New Member

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    I just traded my Prius for a new Camry Hybrid. What else do I have to submit with the IRS form from the link provided? Bill of sales?
     
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