:angry: My CPA gave me copy of IRS code and it says no hybrids earns the tax credit. I can give the IRS document number and wording but it is wrong that our President said buy more hybrids but then denies tax credits unless the vehicle is all electric. I love my prius and the tax credit was not why I bought it, but I do not like liars. My salesman said I would get $2,000 because it is a 2005 and the 2006 should get more. Not true on the 2005. Ron
When did you purchase your Prius. If it was on or after Jan.1, 2006 and you do not have to pay AMT then you will get a $3150 tax credit. If you purchased BEFORE Jan. 1, 2006 you will qualify for a $2000 tax deduction. (not a credit so it's only worth $500-$700 off your taxes). The president did not deny any credits, it's your responsibility to know the laws before you buy.
Time to dump your CPA and upgrade to TurboTax. For 2005, it is a $2000 deduction, not credit. Deduction will net you approx $500 +/- depending on your tax bracket.
apparently your CPA didn't look at the HYBRID information, just at the ELECTRIC VEHICLE info. we had one person here trying to fill out the electric vehicle credit form recently, i tried to steer her in the right direction but i still don't know if she found what i was talking about...
If getting a new CPA isn't an option, then tell him to look at the "Clean Fuel" deduction for 05 returns. That's where you'd record the 2K deduction (indeed, not a credit), for the Prius. Has nothing to do with Electric. http://www.irs.gov/newsroom/article/0,,id=107766,00.html http://www.fueleconomy.gov/feg/tax_hybrid.shtml http://www.fueleconomy.gov/feg/tax_hybrid_old.shtml
what sucks rocks is that you can't take the credit for a [even slightly] used car purchase. Even if the former owner never took it. fux0rz. . _H*
It sounds like your doing this years taxes.. you only hope for this season is if you bought in 05 as already mentioned, you qualify for a deduction. If you make alot of money and normal score a high AMT, you may actually get back more than if you had bought in 06 and try for a credit next year. If your AMT is normally 0 dollars, then the credit would have been sweeter. There is tons of discussion on this if you want to dig deeper.
Is there anything else you want to blame on the President? What about that gallon of milk you left in the trunk of the car that went bad? W could have done something to remind you to bring it in the house. Did you gain a couple pounds over the Christmas season? That's W's fault too. He could have given everyone in America a free life-cycle in the name of a health initiative, but he DIDN'T.. so this really is his fault. There are so many things, don't just blame your ignorance of the tax laws on him, let it all go... blame all of your ignorance on him!! Real bright... you go for it...
I would blame anyone's ignorance of the tax laws on the fact that they have been ALLOWED to become so complex and take up so many feet of bookshelf, to the point that the ordinary taxpayer has quite a job understanding just barely enough of it to wade through all the right numbers for himself and not have bully-boys with big guns showing up on his doorstep. Therein lies the problem, and W and co support this sort of increasing complexity, as do all the CPAs and lawyers who, as always, profit from the commoner's loss. . _H*
Well, add me to the list of profiting SOB's. Really though, I hate even doing my own taxes, such a pain.
The tax laws are complicated but doing a little searching isn't. Just Goggle "Prius tax credit" and you will get quite a few hits and some will even bring you back here. Ditto "blame Bush".
:angry: I'm with some other respondents - Get another CPA. My CPA for many years has been TurboTax which permits me to play "what if" when there could be several ways to structure your Tax Return. The ridiculously complex tax code was in effect long before "W" took office. Our legislators seem unable to get serious about really simplifying it - as in the flat tax approach. They will not until we (voters) give them the message in no uncertain terms. I do credit "W" with helping get realistic tax credits or deductions for "clean" and more fuel efficient vehicles.
