YIKES!! Just totaled my car!!!!

the transaction has to take place in 2006 for the tax credit to work. otherwise you get the deduction, which is in place for those who purchased in 2005. it won't add up to much in the end.

that's a quandary- i'd want to wait if i were you, too, but you also need a car to get you around. if it's worth it, i'd say just go ahead and get one now... but like i mentioned above you'll kinda lose out on the tax return end of things.

 

I'd do that, and then sell it myself when the Prius showed up. That gives you the luxury of passing up any offers from the dealer of MSRP+$3000 just to get the Prius a little sooner. You can wait until you can pay MSRP or less.

 

B)
If you don't have to worry about AMT, the tax difference should come out to ~$2500 ($3150 2006 credit - $560 2005 deduction).

Seems to me you could rent a car for two months and still be ahead of the game.

Maybe consider buying a beater you could turn around and sell again in 2 months with little loss in value.

B)

 

okay i've had my head in the sand here.... there's going to be a tax credit for the prius bought in '06?!? wow that's awesome (not that i'm buying another). been really out of the loop...

 

cosmo: to (ahem) answer your question (we get off on tangents easily!)---

YES you can get the '06 credit for a new '05 "PUT IN SERVICE" 1/1/06 or later.

What this means is that, when you say "go and buy one now...but take DELIVERY in Jan...." it depends on what you mean by "buy" (geez, sounds like Clinton, huh?)

NO, you cannot complete your financial transaction with the dealer now, then have them simply hand you the keys 1/2/06 (assume they're not open 1/1!); once you complete the PAPER transaction, the dealer is bound to start the paperwork to put the title in your (or your financier's) name. And this effectively "puts it in service".

You'll have to work out the details with a dealer. I doubt any dealer will "hold over" an '05 now on their lot for you for (as of today) 65 days, no matter how large a "deposit" you gave them.

You might, however, find a dealer (it would have to be a high-volume dealer for them to still be getting '05s this late) who expects to receive some '05s in, say, mid-to-late Nov., and who might "sit on one" for you. I really doubt this, too. And, of course, you'd have to rent a car in the meantime, or make other arrangements.

 

I have a quick question, If you already bought an 05 and are considering buying another Prius, can you buy the new one in 06 and get both the 05 deduction and an 06 credit?
-Paul R. Haller-

 

i guess you get the deduction for the '05 you bought when you file your '05 income tax... meanwhile, if you buy another one in '06, you'll get your tax credit when you file for you '06 income tax... which will be in '07.

 

So, does the 60k limit of tax credits per car model include both 2005 and 2006 Prii together?

 

Of course you can deduct both . . . remember, we are talking “Tax Years†here. You bought your ‘05 Prius in either calendar year ‘04 or ‘05. So, you either filed for the deduction before April 15, 2005 (like I did because I bought in 2004), or, will be filing before April 15, 2006 for the 2005 tax year.

If you purchase a Prius in 2006 and are one who is eligible (***) for the tax credit, you will not be filing until 2007 anyway. You will not have two Prii show on the same tax return . . . not that there is anything wrong with that . . . unless it makes ATM kick in.

*** Timing is Everything!

There’s a limit to the government’s generosity. Only 60,000 vehicles per manufacturer — not per model — are eligible for the full credit. Once the 60,000th vehicle is sold, the credit begins to phase out.

Some automakers could hit this milestone early in the year. For instance, this year Toyota is expected to sell 100,000 Prius models — an average of 25,000 vehicles per quarter. When you add in sales of its other hybrids, Toyota could conceivably hit the 60,000 mark in the first quarter of next year.
http://www.foxnews.com/story/0,2933,173023,00.html

P.S. I think I would file very early in 2007 for the 2006 tax year if I had a Prius tax credit sitting there.
When/how will the IRS select the cut-off for Toyota hybrid #60,001???

 

http://hybridcars.about.com/od/news/a/hybridtaxcredit.htm

This should be the proper way to calculate who gets full credit.

 

Even 25% of the original credit, if calculations now circulating are accurate, will mean a $750 credit---more than the present $2K deduction yields.

50% = $1,500 +

 

[/QUOTE]All,

Well, my 1997 Ford Escort just met it's end by sliding under the bumper of an SUV. My first accident in well over a decade, but them the breaks, such is life. The damage wasn't that bad, but it's only worth $1400, and it costs that much just to get a mechanic to take a wrench out of his pocket, so it's totaled.

I've been seriously considering buying a 2006 Prius, and I've been reading this board almost daily to find information such as cost and options for the 2006 vehicle. Unfortunately, I can't wait that long to get a car, I need to get back and forth to work, so a can't wait until Jan/feb/march time frame to get a car.

To that extent, the reason I was waiting until 2006 was to take advantage of the tax break. The tax break is what puts the Prius in the price range I would look at for a new car.

So here is the question. Does anyone KNOW if you can buy a 2005 model, and NOT TAKE DELIVERY until 2006 and still qualify for the 2006 tax credit? That would be the ideal situation for me. 2005 Prius' are still available at local dealerships, so I can go out and purchase a 2005 model this weekend.

I'd just buy an old beater with the insurace cash that can get me though the winter, and then just trade that in when I recieve the Prius in early 2006.

This just throws a wrench into the works because my timeline that I was working on has been severely compressed by this accident. I don't make snap decisions very well, I'm much more comfortable thinking things through and making a very informed decision.

Oh, and just incase anyone was wondering, no one was hurt, which really is the most important thing.

Thanks for any help,
Cosmo

*Uh...Cosmo...

*Maybe I missed something but....

You said you can't wait till Jan/Feb so you have to get an 05, buy an old beater and try and play the tax game by not taking delivery till 06....

If you're gonna wait to take delivery in Jan for an 05 and drive the beater...

Why not order an 06 (which should still come in in Jan/Feb) and drive that same old beater?

Then you'd get the 06 perks.

Did I miss something?

That would be what I'd do if I was willing to drive an old beater till the new year.

Just my 2 cents worth!

Aaron

 

Yeah, I'm with XLR8 on this one.

As long as you are implementing a stopgap measure anyhow, may as well just get the '06 you wanted anyway!

 

Why not see if Hertz or someone will rent you a car for a couple of months? Sure, it may cost you 1-2 grand, but you'll be driving and you'll be able to locate a Prius to buy as soon as it's 2006 at your leisure.