I filed an extension this year (For 2005 taxes) and just got them done. I had enough deductions NOT using my tax credit, so I had no taxes to pay (yay, the benefits of self-employment!).

So I wasn't able to use it. Does anyone know if I can use it next year instead? Or at least where to go to find out?

My accountant is "pretty sure" it can't carry over.

And in case you are wondering, I checked all my other deductions and none of those can carry over (I was going to carry over other deductions and use the Tax Credit but that won't work either).

 

Call the IRS.

 

I assume you purchased in 2005 (since you were trying to use on your 2005 tax return). Then it is a deduction and not a credit. I don't think it carries over, but you should talk to the IRS to be sure.

 

According to my accountant, no, you have to use the deduction according to the rules of the tax year you are filing in. So you can use it as a deduction and not a credit for tax year 2005 only.

 

He probably did, and is posting his question here, figuring he will get a faster answer !

 

Man I never woulda thunk of that one! thanks much for the help

 

Keep in mind that when calling the IRS, I have read reports that 1/3 of all answers that they give you are wrong... and they aren't liable - you are

Gotta love the government.

Eric

 

I've read that as well. I'd trust a CPA or two much more so than IRS help.

Even tax-prep tools, such as TurboTax, probably have the answer.

That said, I personally believe that you must use it (or lose it) in the year the vehicle was put into use.