get Tax credit and then sell?

if you sell within 3 years there's a prorated recapture.

 

Try a lot of other dealers in your area and surrounding areas, even other states. Sometimes the ones in small areas have them available. When first looking, we were on about 30 dealer lists in about 5 states..took us 4 months back in 03-04. They are producing way more now!

 

<div class='quotetop'>QUOTE(galaxee @ Aug 28 2006, 11:53 AM) [snapback]310557[/snapback]</div>

Are you sure there is a recapture if sold in the first three years? I have not seen this documented. This would also mean the IRS would have to audit all hybrid tax credit claims from 06 for the next three years. That could be 100,000 extra audits each year.

 

For an individual taxpayer, there is no limit to the number of credits that may be claimed in any tax year, nor is there a specified holding period. At least that's the way my tax attorney reads the codes. This isn't tax or legal advice, please talk with your accountant. In my experience with Prius, Highlander and Camry hybrids, $1,575 is less than the market will bear.

http://www.irs.gov/newsroom/article/0,,id=157557,00.html

 

<div class='quotetop'>QUOTE(ajrowell @ Aug 28 2006, 01:28 PM) [snapback]310609[/snapback]</div>

The Energy Policy Act of 2005 clearly states that there shall be some form of recapture on the sale of a vehicle to which the credit was applied. The IRS was given the responsibility for coming up with the recapture provisions and has not published any guidance. So, the law states there is a recapture, but there's no guidance to tell us how it is applied.

In addition, the Energy Policy Act of 2005 states that vehicles do not qualify if they were purchased for resale. The language appears to be targeting dealers that just buy a car, claim a credit, then try to sell it. Again, the IRS has yet to issue guidance on what is meant by this provision, so its precise application to individuals that quickly sell a Prius is uncertain.

 

I have nothing re: your question, but a question back to you -- why would you want to pay sales tax twice? At least where I live, that's a nice chunk of change...

 

If you're only selling to get rich off the difference in the credit, any sales tax that your state charges will immediately eat into your "profits" significantly. Then again if you trade in the vehicle in most states that will lower the cost on the next purchase (but if you have to trade in to the dealer, this will take another bite out of your "profits").

I have not seen it codified that you must hold the car at least "x" months before the credit is fully yours, but I would not be surprised to see such regulations published once people can actually begin filing for the credit. I can see the question in the 2007 and beyond tax software now -- "I see that you bought a hybrid last year that you took a tax credit on. Did you sell the hybrid?" -- to account for this.

 

Mel, that's what makes it work in my state. We have no sales tax and total TT&L fees are $35/year.

 

<div class='quotetop'>QUOTE(kettledrum @ Aug 28 2006, 08:08 AM) [snapback]310535[/snapback]</div>

I don't know if you've posted in another threads about what you've told your dealer, but have you told your dealer the above preferences?

Mine in CA told me that the more color and packages choices I specify, the more of a chance one of the incoming cars will match what I want. I gave them 3 choices: silver, beige (I think Driftwood Pearl) and white, all w/package 7. I ended up getting my 3rd choice: white in ~1.5 months which was well ahead of schedule. http://priuschat.com/index.php?showtopic=1...96&#entry213696 has a more complete version of my story.

I'd also try putting down deposits and multiple color/package choices at other dealers.