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Two Priuses - one tax credit

Discussion in 'Prius Tax Credit Discussion' started by suefourmet, Feb 21, 2008.

  1. suefourmet

    suefourmet New Member

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    This is going to sound confusing, but..

    I purchase a 2007 Prius the end of March 2007. One month later, that Prius was totaled in an accident. After the insurance pay-off I then purchased another 2007 Prius in early May, 2007. Of course I'd rather use the March date rather than the May date in applying for the the tax credit, but I'm not at all sure about the legalities. Any ideas?

    thanks,

    Sue
     
    #1 suefourmet, Feb 21, 2008
  2. RobH

    RobH Senior Member

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    Morally I'd say you bought one car in March. Legally, I'd say you bought two cars. Lots of people have multiple cars, so that's nothing unusual. Before claiming the second one, perhaps you should consult a tax advisor.
     
    #2 RobH, Feb 21, 2008
  3. JimN

    JimN Let the games begin!

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    IMO there is no question. There are no rules (that I know of) regarding length of service. You bought two cars and put both in service during the period the credit was valid. You can claim two credits. Whether or not you receive the full benefit is another story. Read the directions on the back of the form.
     
    #3 JimN, Feb 21, 2008
  4. ksstathead

    ksstathead Active Member

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    I agree w/ Jim. I'm not an expert on the 8910 credit form, but I've done tax returns for a living for many years. It reads to me, at a glance, that you were the original user of both cars and if you have enough tax liability and if your tentative minimum tax is low enough, you'd get both credits. Each purchase would be computed at its phaseout % (50% credit in March, 25% credit in May).
     
    #4 ksstathead, Feb 21, 2008
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