IRS Tax Credit misinformation?

No reason not to get it. I had to shop around a little but eventually found a dealer that passed it on to me. They were also the one with the biggest inventory of PiP's which probably helped.

 

Forte88, excuse me?
YOU have your conversations all screwed up..
I did not lease my car. I drive way too many miles to lease my commute car. My clients know this.
The State tax credit $1500 is for all.
The Federal one for $2500 is open to interpretation, but I tell everyone to check with their tax people.

The IRS website says nothing about specifics. The Toyota website says no to leasing, yes to buying. The incentives for doing the lease vs the buy are different at this time.
I have never told anyone that they can take a tax credit from the FEDS if they lease... matter of fact, just the opposite. I have clearly stated that this has been a NO at Toyota's website, and the IRS site has no clarification, and talk to YOUR tax people like I talk to mine. If I had leased, I would have taken it because I'd have bought the car out at the end. That was my interpretation of this. But, as I say to all - that's just what would have been MY decision.

I did not lie to you. And, I am furious that you'd say something like this.
Dianne

 

I stand by my original statement. I don't have any way to recall what was said BUT I know what I said to all.

And, had you been seated at my desk picking the car up, rather than MB, you'd have gotten the straight scoop during the transaction when the decision was made to either lease or buy.
I talk to lots of people and buyers phrase things differently when they ask questions of me.

I may have had no idea at the time that you'd planned a lease versus a purchase.
Needless to say, the dealership you conducted business with is the "who" you should be "furious" with. Being accused of lying to you is not something I take lightly. It is your word against mine, and I am aware of that but I have dozens and dozens of folks (actually, over 250) who've sat at my desk buying or leasing PlugIns who know that I'd never do that. What on earth would be my motivation? To get a previous client audited or scolded by their tax professional for leasing when a tax credit would have been desired? Hardly.

 

Dianne, even if you bought the car out at the end of the lease, you still wouldn't be entitled to take the tax credit. You'd be the second owner of the car. The lessor of the car is considered to the be the first owner, and only the original (first) owner gets the tax credit. While the IRS site doesn't specifically state this, the form that you have to file to get the credit does state this.

 

That's how I got my dealer in NJ to pass it on to me. I showed them the actual IRS document (Form 8936) that clearly says:

• You are the owner of the vehicle.
If the vehicle is leased, only the lessor and not the lessee, is entitled to the credit.

Until they saw that, they insisted the tax credit was all mine even though I was only leasing. After they saw it, they reduced the monthly lease accordingly and I signed. Without the extra reduction, I never would have done it.

 

I want to say any of my comments (about dealers/consumers) have been generic, not specific to this thread.
It should probably be noted that some of the East Coast purchase prices and presumably lease deals have been quite a bit less cost on East Coast than typical California deals. So one should not assume an East Coast PiP lease deal can be matched in CA, we expect higher PiP costs in CA because CA is by far the highest demand for Plug-Ins.

 

That's true for NJ. I also got $4,000 cash right off the top. Advertised lease was $259 mo before TTL and GAP insurance. My OTD lease for 36 mo 12,000 miles came to $285 incl GAP when they finally included the tax credit "compensation". Doubt CA could match that. They never actually called it "tax credit compensation" but instead said they suddenly found extra incentives.

 

Forte, you singled me out not once but several times in subsequent posts. If you didn't mean to single me out or harm my credibility, then prove it. Take me out of the posts. Every one. Because I never said it.

 

Here's another site that says the consumer is not entitled to the credit for a leased plug-in:

Federal Tax Credits for Plug-in Hybrids Purchased in or after 2010

Click on "more" to expand the "Requirements" section. It says "The vehicle is acquired for use or lease by the taxpayer, and not for resale. (The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.)".

 

Private message works great as well. That way, you won't need to edit them.