Okay so my car should be here in 10-14 days. I am getting it from Longo Toyota and they don't do mark ups. Should I take the car even though it may be before January 1st? I admit that I have not read too much on the tax credit situation but even with what I have read, I am extremely confused. Can anyone explain the tax situation to me? I have went back and read some old posts about it but I am still not sure on what to do. Thank you
If you take delivery of the car in 2005 and the paperwork (particularly the invoice) is dated in 2005, forget about taking the credit on your 2006 tax return. Instead, take the deduction on your 2005 return. That's fairly straightforward. Opinions seem to diverge in the scenario where the invoice or other paperwork is dated in 2005 but delivery (car driven off the lot) doesn't occur until 2006. The issue is whether the car was "originally used" or placed in service in 2005 or 2006 for purposes of claiming the deduction or the credit. In short, if the documentation is dated and delivery occurs in the same calendar year, there really isn't an issue.
I took possesion of mine yesterday. I weighed the pros and cons of the tax incentive and getting my paperwork into the DMV for HOV access was the deciding factor. I wanted to be able to beat the rush of applicants starting at the beginning of the year. Bill
