Why I Got Rid of My New Prime

Whatever the $2504 federal tax thingy is, it is not disallowed if you are required to use AMT. Been there, done that, using a professional tax preparer. Twice (2012 PiP and 2017 Prime).

 

The disallowment might have been with the old hybrid tax credit.

 

Great Post...Thanks!

Nice post.....

 

Yes. As I recall, when we went through this with the PiP, there was confusion between the current credit, which is not subject to AMT, and an earlier hybrid tax credit, which was.

 

This is correct. They'll come after you for that state rebate. They do periodic checks to see if you still own the car and when they see it's not registered to you anymore they'll ask for it back.

Happened to me.

 

Which seems fair. To collect a rebate and "flip" the car: not so good. How long do you need to keep the car to be able to keep the full rebate; has it been mentioned?

Oh, if it can happen it will happen: people intentionally totaling their Prime??

 

Yep, 30 months. I got mine in Jan 2018 so I've got to keep mine another 6 months give or take and I'll be able to sell without relinquishing any of the rebate.

I am surprised however that no such restriction exists on the federal rebate. I haven't looked into it but the OP seems to indicate that there isn't.

 

Treatment of Alternative Motor Vehicle Credit as a Personal Credit Allowed Against AMT (Section 1144)
Starting in 2009, ARRA allowed the Alternative Motor Vehicle Credit, including the tax credit for purchasing hybrid vehicles, to be applied against the Alternative Minimum Tax. Prior to ARRA, the Alternative Motor Vehicle Credit could not be used to offset the AMT. This meant the credit could not be taken if a taxpayer owed AMT or was reduced for some taxpayers who did not owe AMT.

 

What does AMT stand for?

 

alternative minimum tax

 

Automatic Manual Transmission !


Rob43

 

Yeah I saw that, but I don't think so. Some sort of US tax factor?

 

AMT can mean many things.

https://acronyms.thefreedictionary.com/AMT

They're talking about the alternative minimum tax here, which results in higher tax than with regular tax calculations for high-income tax filers.

Alternative minimum tax - Wikipedia

 

AMT was intended to make sure high-income filers paid something. But over the years, it was not adjusted for inflation, and ended up biting a lot of middle-class taxpayers.

 

That was just my mediocre sense of humor at work.


Rob43

 

I've heard in Home Improvement biz, that "Lifetime" means 7 years unless different in writing.

 

For cars, it is 100k to 150k miles.

 

Especially 3rd gen...