I understand that the Toyota Hybrid tax break is over some time around Oct 2007.

Is there a form I need for the IRS or how does it work? I guess I will only be able to do it once, why end it in Oct? Might as well be after April 1 2007 once tax time is over or am I missing something?

 

For official information go to: http://www.irs.gov/newsroom/article...=157632,00.html
In short it works like this: it's a 2,600 tax credit you claim on your 2006 return from the total amount you owe. One may claim full tax credit if the car is bought not later than the first quarter after the car maker sells the 60,000th hybrid of the year (starting Jan. 2006). Since Toyota reached that back in June (second quarter of this year) the full credit will expire Sept. 30 2006. After that, for two quarters, one may claim 50% of the tax credit (1,300 for TCH). Starting in April 2007, one may claim 25% of the tax credit ($650) until the end of Sept 2007, then it's all gone for Toyota. The other manufacturers are expected to reach the 60,000 figure much later so quite a few people will probably look elsewhere to get the full credit.

As for why end then - I think it's the strong lobby of domestic car companies on Capitol Hill (don't want to generate controversy, just my opinion). Still, with the Japanese car makers opening their plants in US, and GM-Chrysler-Ford moving overseas, I really don't know who is/isn't "domestic" anymore.

 

It doesn't go away it just drops to 50% starting Oct 1.
You will file for the credit with your regular income tax return you file in 2007.

For my Prius there was no special IRS form but rather a single line item on the front of the form 1040. I'll assume that might be the case this time around.
J

 

You fill out Form 8910, Alternative Motor Vehicle Credit. You then take the bottom line and put it on line 55 of form 1040.

 

You may not want to generate controversy, but I have no problem calling a spade a spade.

There is no question that the domestic car companies with their dupes on Capitol Hill had the law written the way it is, to protect their interest.

 

Could also be that Congress wanted it that way. Rather than give out more $3150 rebates for the Prius, they can give more $250 rebates for the GM products.

 

Actually, considering the tax loopholes for SUVs, Hummers and the like in the end it costs much more the taxpayer what GM puts out there than the Priuses and TCHs. Under pressure, the Congress tried to change that, or sort of, back in 2004 but the result is that the heavyweight owners are still able to write-off the full amount they paid for their Hummer albeit over a couple more years instead of the first year of purchase. So no, the law is not there to protect the taxpayer, unfortunately.

 

Any idea if TurboTax will have this? Or am I gonna need to go old school and get a copy of the form from the library? Anybody seen my abacus?

 

I have no way to know for sure, but I'd think that they'd have it.
Yep. It's right next to my slide rule.

 

No need....I posted the form from a previous thread:
https://www.greenhybrid.com/discuss/...6&postcount=21