tax return for used ????
#1
tax return for used ????
hey guys i currently drive a 01 silverado, and im seriously thinking about buying a hch like 03 or 04. I was wondering if i would get any kind of tax deduction of anything like that from buying a used one because i cant afford to buy a new one because i will be upside down from the truck loan. thanks for any help. Justin
#3
Re: tax return for used ????
Hey Guys;
Justin and kt; you cannot get a tax anything on a used vehicle Hybrid or not. The tax credit is for New Purchases only. Meaning New 1st Retail Owner Not Used Vehicles that have been Titled by a previous owner. Even if the vehicle had never left the dealers lot. If it was sold and titled you cannot purchase it and turn it in for a Tax Credit Or Deduction.
Sorry-Guys
HTH
Terry
Justin and kt; you cannot get a tax anything on a used vehicle Hybrid or not. The tax credit is for New Purchases only. Meaning New 1st Retail Owner Not Used Vehicles that have been Titled by a previous owner. Even if the vehicle had never left the dealers lot. If it was sold and titled you cannot purchase it and turn it in for a Tax Credit Or Deduction.
Sorry-Guys
HTH
Terry
Last edited by tigerhonaker; 11-13-2005 at 07:55 PM. Reason: Better description:
#4
Re: tax return for used ????
Originally Posted by tigerhonaker
Hey Guys;
Justin and kt; you cannot get a tax anything on a used vehicle Hybrid or not. The tax credit is for New Purchases only. Meaning New 1st Retail Owner Not Used Vehicles that have been Titled by a previous owner. Even if the vehicle had never left the dealers lot. If it was sold and titled you cannot purchase it and turn it in for a Tax Credit Or Deduction.
Justin and kt; you cannot get a tax anything on a used vehicle Hybrid or not. The tax credit is for New Purchases only. Meaning New 1st Retail Owner Not Used Vehicles that have been Titled by a previous owner. Even if the vehicle had never left the dealers lot. If it was sold and titled you cannot purchase it and turn it in for a Tax Credit Or Deduction.
The law give the deduction or credit, as the case may be, to whoever first put the vehicle in use. So, theoretically, if a vehicle was titled and never driven off the lot, and then you bought it, then you could claim the deduction. But you'd have to prove that was the case if audited.
Anyone who plans to claim a deduction for an "almost new" vehicle that was driven "only" three months before they bought it is asking for trouble with the IRS.
And by the way, if you lease the car forget about the deduction or the upcoming credit. The dealer is the one entitled to it in that case.
#5
Re: tax return for used ????
Originally Posted by ElanC
That's generally true but I don't think it's perfectly accurate.
The law give the deduction or credit, as the case may be, to whoever first put the vehicle in use. So, theoretically, if a vehicle was titled and never driven off the lot, and then you bought it, then you could claim the deduction. But you'd have to prove that was the case if audited.
Anyone who plans to claim a deduction for an "almost new" vehicle that was driven "only" three months before they bought it is asking for trouble with the IRS.
And by the way, if you lease the car forget about the deduction or the upcoming credit. The dealer is the one entitled to it in that case.
The law give the deduction or credit, as the case may be, to whoever first put the vehicle in use. So, theoretically, if a vehicle was titled and never driven off the lot, and then you bought it, then you could claim the deduction. But you'd have to prove that was the case if audited.
Anyone who plans to claim a deduction for an "almost new" vehicle that was driven "only" three months before they bought it is asking for trouble with the IRS.
And by the way, if you lease the car forget about the deduction or the upcoming credit. The dealer is the one entitled to it in that case.
Some very good points there. I think that you as well as myself are trying to keep members and guest to GreenHybrid out of (Major-Trouble) with the good Ole "IRS" folks and they do not have a sense of Humor when it comes to getting money from them and it being (Shall-We-Say-Questionable-At-Best). If they ever get on you it is a "Long-Long Time" before they get off your Back. I know of people that did make a (Mistake ) on their "IRS-Returns" and it was Many-Many Yrs. before they could Breathe a Breath of fresh air again. I think my suggestion would be if in (Doubt) don't do it.
Terry
One last comment on the Tax Credit/Deduction Thing:
You can claim or deduct what ever you want to; "BUT" if you get (CAUGHT) the IRS (IMO) is not going to be interested in your comment I thought I could. Like they say, do as you will, or your "Right" until you get "Caught".
Last edited by tigerhonaker; 11-14-2005 at 09:28 AM.
#6
Re: tax return for used ????
Actually last I heard, you can calim the deduction on the vehicle is you bought it used, but only if it has never been claimed before. Which if you bought the car and didn't laim it, while that's just nuts. But if it's never been claimed, it was my understanding that the second owner could in fact claim it.
#7
Re: tax return for used ????
Originally Posted by VampHuntD
Actually last I heard, you can calim the deduction on the vehicle is you bought it used, but only if it has never been claimed before. Which if you bought the car and didn't laim it, while that's just nuts. But if it's never been claimed, it was my understanding that the second owner could in fact claim it.
When you get down to it, you don't specify the exact type of vehicle, who you bought it from and when, or the VIN, on your tax return. You just claim the deduction and they usually take your word. There is no way for them to know whether the vehicle has been claimed already. Only if they find a reason to audit you, you may have to provide proof, give the money back if you did it wrong, and pay a penalty. In such a case, if it's a used vehicle, the burden of proof would be on you to show that a deduction had not been claimed by the previous owner.
#9
Re: tax return for used ????
No, at least not at the IRS. But, the DMV (or MVD, depending in what state you're in) has a record of titlement. And if audited, the IRS can pull from that.
Taking the $2,000 tax deduction is simply a line entry. Can you lie and get away with it? Probably. As the IRS will not know if your vehicle was new (never owned), or used. Heck, they won't even know if you bought a vehicle at all!
But, would it be worth it if you get caught? Depending on when they finally audit you, could be up to seven years if I recall correctly (but indefinitely if they find a history of cheating), you'd be paying back the $2,000, plus interest, plus fines, PLUS possibly more depending on whatever else they find on your returns. Especially if you don't have receipts for deductions that you've claimed in the past.
For what it's worth, I'm NOT a tax professional, but I am a VITA volunteer.
Taking the $2,000 tax deduction is simply a line entry. Can you lie and get away with it? Probably. As the IRS will not know if your vehicle was new (never owned), or used. Heck, they won't even know if you bought a vehicle at all!
But, would it be worth it if you get caught? Depending on when they finally audit you, could be up to seven years if I recall correctly (but indefinitely if they find a history of cheating), you'd be paying back the $2,000, plus interest, plus fines, PLUS possibly more depending on whatever else they find on your returns. Especially if you don't have receipts for deductions that you've claimed in the past.
For what it's worth, I'm NOT a tax professional, but I am a VITA volunteer.
#10
Re: tax return for used ????
Originally Posted by VampHuntD
Agreed, but there much be some record somewhere that has the VINs of claimed vehicles. At least I would think so.