Taxes and Getting My Deduction?
 

I'm about to do my taxes and haven't recieved any documents that I'm aware of regarding how to get my deduction for having this car. Anyone familiar with this? I have an '05 Prius which I bought in December of 05. Thanks. Do I need to go down to the dealership and get something?

Re: Taxes and Getting My Deduction?
 

I didn't get any special paperwork when I purchased my two hybrids in 2004, I just took the deduction.

I also photocopied my invoices for the cars and placed them with the copies of my tax return, just in case some auditor requires it later.

Re: Taxes and Getting My Deduction?
 

Got it! It's a deduction of $2k of your salary in deductions. Taxslayer (what i use) actually had an option for clean-burning fuel deduction.

By the way went to dealer to ask about this and they said call your accountant at toyota financial. those people were RUDE and not helpful. "this is not part of our job" basically is what they said...call your tax person. i'm like YOU told me when buying this car about this discount and you have no idea how it works?

arrgh

Re: Taxes and Getting My Deduction?
 

From this link you can download a short pdf file that gives some info on the tax deduction, although it is uncorroborated and I do not know where I obtained this:

http://www.tamug.edu/labb/LABBpeople...ion%20info.pdf

As stated in above document, in addition to your proof of purchase, you should submit or keep on record these two documents:

From this next link you can download the Toyota certification that I was told needs to be included with your federal return to claim the deduction (or kept on file). I obtained this from the Toyota website:

http://www.tamug.edu/labb/LABBpeople...ation_2005.pdf


Next, you can download the IRS acknowledgement referenced in the first document above (also from Toyota website):

http://www.tamug.edu/labb/LABBpeople...ement_2005.pdf

Hope this helps, and the above is all to the best of my knowledge.
Cheers,
M

Re: Taxes and Getting My Deduction?
 

Read all this and followed the links but it only lists info for the Prius through model year 2005. I bought a model year 2006 in 2005 (yes I realize that patience would have paid off but the only way to avoid a many month wait on the congiguration I wanted was to purchase while all others were delaying). Has anyone seen any reference to model year 2006 Prius in the 2005 tax info?

Re: Taxes and Getting My Deduction?
 

All of the above forms are also available on the Toyota.com website, click on Hybrids, in the new window click on FAQs, and from there select the question 'Are there tax incentives....' and then click on the Prius link (or HH link for that car), and this will open a new windwo with links to all available documents, however, it does not include the letters for the 2006 MY.
M

Re: Taxes and Getting My Deduction?
 

I'm a tax assistant for my military base. Today, I was happy to see that Virginia (my state of residence) gives a 10% tax credit (up to $150) on the $2,000 federal tax deduction for clean fuel vehicles. That's $150 off your Virginia tax return! And, the credit can be carried over for five years. Meaning, if you don't use up the whole $150 this year, whatever is left over can be used within the next five years.

We're set up to do all 50 states. I haven't researched each state yet. But as I do, if I see any hybrid discounts, I'll be sure to pass that info onto this forum. Hopefully, it'll help someone out.

Also, to answer the original question: you don't need any specific document to take the $2,000 tax deduction for 2005. As the original poster figured out, most tax software will ask if you have a clean fuel vehicle and give you the appropriate credit.

I can imagine in the future, the hybrid tax credits will be tied to VINs. Kind of like how these days, when you claim dependent children, you have to enter their SSNs. That way, the child can't be claimed more than once (especially for divorced parents). Of course, using the VIN is just my opinion. Who knows what goes on in the minds of IRS personnel.

Re: Taxes and Getting My Deduction?
 

To the person wondering about the 2006 credit here is a link from Toyota.com with a link at the top for the 2006 model. It's a credit in 2006 rather than before where it was a deduction from what I've read and been told. After hearing this I should have waited 17 days and bought in 2006.

http://www.toyota.com/vehicles/2006/prius/tax.html

Re: Taxes and Getting My Deduction?
 

Should have waited 1 month... and got the car in 06.

Re: Taxes and Getting My Deduction?
 

that's what i just said lol