Federal Tax credit

I asked my dealer bout that. He said you just report it on your taxes. Perhaps include your paperwork with your taxes. But ask anyhow, who knows if what they told me is correct.

 

You'll need IRS form 8936, the instructions are here, and the tax credit amount for Prime is already listed here.

Consult your tax advisor, or if using tax prep software, u might have to prompt the program.

 

If your vehicle was placed into service in early 2017, can you claim it on your 2016 federal taxes?

 

I'd say no.

 

The in service date is the day the car is purchased. If you sign the contact, write the check, and know the VIN in 2016 it looks like the credit can be claimed but there are other considerations.

You'll need/want insurance on the car from the contract date. If the car is damaged in transit it won't be Toyota's problem or the dealer's problem, it'll be your problem. If the dealer doesn't have possession of the car how are they going to process the title? Will they certify the mileage statement without seeing the odometer just for you? I doubt it.

 

Met with my accountant this week to do my taxes. Be aware that if you use your vehicle for business purposes, it might affect the full credit of 4500. There is a formula that reduces the credit by the deduction you take for business miles. For me, it knocked about $1000 off the credit. I trust my accountant ran the numbers every which way to find the best benefit for me.