Although it didn't apply to me last year, if I'm not mistaken, Turbo Tax did ask in its series of questions whether or not I purchased a hybrid vehicle when I did my 2005 tax return.

 

Full Tax Break Credit question:

Does anyone know if you can claim full tax credit ($2,600.00) by filling out only all legal paper work with the Toyota dealership before 9/30/06 but take delivery of the 2007 TCH after 9/30/06?

Thanks in advance for your responses.

 

I was told the car had to be delivered before the cut off date. SK

 

I don't think that will work. The rules state that the car has to be "placed in service" by a specific date, although you can pay for it later. Buying it before the deadline won't make any difference.

(I'm not a tax professional. This is just my interpretation from reading the information from the fueleconomy.gov website: Tax Incentives for Hybrid Vehicles)

 

Maybe I did not explain the scenario well. Here it is again...:

Let's assume, hypothetically, that someone does all legal paper work now 9/9/06 and the vehicle TCH arrives at dealership before 9/30/06 and just sits in the dealership lot and that someone takes delivery and drives the TCH from the dealesrhip lot on 10/1/06 or later. My point is if someone has all legal paper work done but can NOT drive it off the lot before 9/30/06, how can someone find out?

Here is also what I found out online...:

"You must purchase a qualifying vehicle, and the qualifying vehicle must be "placed in service" in 2006. Placed in service means when you actually take possession of the vehicle, according to Mark Luscombe, JD, CPA and principal federal tax analyst for CCH. You must take delivery of the vehicle on or after January 1, 2006. Taking early delivery will prevent you from being eligible for the hybrid tax credit."

 

If it's on the lot and in your name then I don't see a problem nor do I see any way for the government to prove it wasn't yours.

The previous concern about doing the legal work before the car arrives would be sticky and I doubt that a dealer, even if they already had the VIN would want the liability of saying the car was yours prior to it being in their possession. Too many things can go wrong.

This is sort of the honor system as there is no federal inspector watching us drive away. If it's in your name and you're simply parking it on their lot, that's your choice. I wouldn't hesitate turning in the credit papers. PS: Have your insurance and temporary registration and EVERYTHING needed dated correctly.

 

Newb here. Does this mean I must purchase a TCH before October 1st in order to qualify for the $2,600 tax credit? After 10/01, it's only $1,300.

 

Must take delivery by 9/30 for the full tax break on the Camry Hybrid or Prius.... As of 10/1 the tax credit is cut in half. Credit is different for Camry Hybrid and Prius...but good luck in getting them by then...look at some of the other posts for places to possibly get one. I was at my dealership today getting my plates and they said it was a 2 month wait...still!

 

Is the same true for they Highlander and 400h?

 

Yes, because WHEN the tax break changes is tied to when the manufacturer sells a certain number of hybrids, and Lexus is considered the same manufacturer as Toyota. All Hybrids sold by Toyota/Lexus will have the same dates for tax credits. I believe they reached the limit in May, and the following quarter, starting in July, (3 months: Jul, Aug, Sept) have the same tax credit, then drops to 1/2.