Tax break.

the way i understand it, you can purchase as many as you want and try to take the credit on all of them (of course, this is assuming you don't hit AMT and you're paying enough in taxes to be able to take 6k off). note that you do have to keep the car for a certain length of time to get the full credit. The last i heard (as of a few weeks ago) the 2007 model hadn't yet been included in those that are eligible for the tax break.

 

FYI the 2007 model does not qualify for any credits until Congress passes another credit for 2007.

 

<_< QUOTE: "FYI the 2007 model does not qualify for any credits until Congress passes another credit for 2007."

I thought the IRS Tax Credit was related to the purchase irrespective of the "year model." I.E.: Purchase of a NEW 2005 (first purchaser, never registered Prius - if indeed you could find one) would qualify for the $3,150 credit if purchased on or before September 30, 2006 - $1,575 credit from October 1, 2006 thru March 2007, etc. Seems a 2007 model would be elegible for the $1,575 if purchased before the end of March 2007.

Can one more familiar with the IRS Regulations provide a definitive answer?

 

Oh, something i miss read in your first post there. You got the deduction in 05 because you purchased in 05. Which means it doesn't qualify for the credit this year (you would have had to purchase it jan 1 or later). If congress gets around to it, the 2007 may qualify for the credit, or it may not. regardless, the credit is going to start being phased out at the end of this month - any Toyota hybrids purchased after this month will only get 1/2 the credit, and 3 months later 1/4 the credit. So if you want the full credit, go out and grab another 06 this month!

 

<_< Here's the IRS "WORD" ..... Seems the 2007 Prius aren't included yet but the 07 Camry is.

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

 

<div class='quotetop'>QUOTE(Soylent @ Sep 6 2006, 01:40 PM) [snapback]315273[/snapback]</div>

I don't think it has anything to do with Congress passing another credit. Anything to back up this statement?

 

<div class='quotetop'>QUOTE(4chi @ Sep 7 2006, 12:32 PM) [snapback]315805[/snapback]</div>

I must be missing something here. The credit applies to 2006 and not 2007. However it seems a little unclear to quote half credit and one quarter credit phaseouts thru parts of next year when you would be very hard pressed to find a 2006 Prius six months after the 2007's start showing up.

 

<div class='quotetop'>QUOTE(Ghostrider @ Sep 7 2006, 07:27 PM) [snapback]316111[/snapback]</div>

Incorrect; it remains in effect through 2010 if you can find a qualifying vehicle. (It is hard to imagine why the law would have its long tail, with descending percentages of credit, if the whole thing expired on December 31, 2006.)

<div class='quotetop'>QUOTE(Soylent @ Sep 6 2006, 10:40 AM) [snapback]315273[/snapback]</div>

Completely untrue.

<div class='quotetop'>QUOTE(eagle33199 @ Sep 6 2006, 10:52 AM) [snapback]315284[/snapback]</div>

Incorrect. The credit went into effect on January 1, 2006 and it stays in effect until the end of 2010 (for manufacturers who aren't selling many qualifying cars!). However, each model has to qualify each year, but that is not something that Congress has anything to do with. IRS Notice 2006-9 (note: that's an Adobe PDF file) provides that the manufacturer has to submit a certification to the IRS and the IRS has to respond. Those responses are now beginning to trickle in for 2007 model cars, but some 2007s may not be in production yet, and for others the paperwork hasn't made it all the way through the process yet. I'm guessing Toyota's paperwork for the 2007 Prius is sitting on somebody's desk.

The language of that notice provides in part, "The purchaser may claim a credit in the certified amount with respect to the vehicle if the following requirements are satisfied:
(1) The vehicle is placed in service by the taxpayer after December 31, 2005, and is purchased on or before December 31, 2010. ...."

 

<div class='quotetop'>QUOTE(eagle33199 @ Sep 6 2006, 10:52 AM) [snapback]315284[/snapback]</div>

Incorrect. The tax credit for buying a qualifying Toyota or Lexus vehicle remains at 50% of "X" for SIX months beginning October 1, 2006, and then it drops to 25% of "X" for six months beginning April 1, 2007. The value "X" is $3150 for the 2006 Prius. It may be some other value for the 2007 Prius.

 

Tax Credit? Does that mean, I will get $3150 back when I do my taxes or I can deduct $3150?

Thanks.

 

<div class='quotetop'>QUOTE(SDpnoy @ Sep 9 2006, 12:22 AM) [snapback]316876[/snapback]</div>

This is a complex issue, discussed at length in other message threads. See your Form 1040 for 2005. Assuming that the line numbers on the 2006 form are the same, those who can claim the tax credit will enter it on line 55. Along with other entries on lines 47 through 55, that sum will reduce your tax shown on line 46 ... but not below zero, as calculated on line 57. Those who can claim the credit will need to complete IRS Form 8910. The current version of the 2005 version of that form (that link takes you to the form as an Adobe PDF file) sets out how to claim the credit. Those who are subject to the Alternative Minimum Tax (AMT) probably will not benefit from the credit.