US Income Tax Deduction for 06 Prius Bought in 05
#1
02-12-2006, 06:47 AM
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US Income Tax Deduction for 06 Prius Bought in 05
Just found this on the IRS site (for those like me who bought an 06 in 05):
"IRS Certifies 2006 Toyota Prius Hybrid Vehicle for 2005 Deduction
IR-2006-26, Feb. 8, 2006
Washington — The Internal Revenue Service has certified the model year 2006 Toyota Prius Hybrid for the clean fuel vehicle deduction. This certification means that taxpayers who purchased a 2006 Toyota Prius new during calendar year 2005 may claim a tax deduction of up to $2,000 on line 36 of Form 1040.
The agency stresses that the $2,000 deduction is for tax years 2005 and earlier. Starting in 2006 the deduction is replaced with a credit, which will require a different certification. The tax credit for hybrid vehicles applies to vehicles purchased on or after January 1, 2006 and may be as much as $3,400 for those who purchase the most fuel-efficient vehicles.
For taxpayers filing their 2005 tax returns, however, the deduction must be taken in the year the vehicle was originally used and the taxpayer must be the original owner. Since this benefit can be taken as an adjustment to income on Form 1040, individuals do not have to itemize deductions to claim this deduction."
The URL is: http://www.irs.gov/newsroom/article/...154318,00.html
"IRS Certifies 2006 Toyota Prius Hybrid Vehicle for 2005 Deduction
IR-2006-26, Feb. 8, 2006
Washington — The Internal Revenue Service has certified the model year 2006 Toyota Prius Hybrid for the clean fuel vehicle deduction. This certification means that taxpayers who purchased a 2006 Toyota Prius new during calendar year 2005 may claim a tax deduction of up to $2,000 on line 36 of Form 1040.
The agency stresses that the $2,000 deduction is for tax years 2005 and earlier. Starting in 2006 the deduction is replaced with a credit, which will require a different certification. The tax credit for hybrid vehicles applies to vehicles purchased on or after January 1, 2006 and may be as much as $3,400 for those who purchase the most fuel-efficient vehicles.
For taxpayers filing their 2005 tax returns, however, the deduction must be taken in the year the vehicle was originally used and the taxpayer must be the original owner. Since this benefit can be taken as an adjustment to income on Form 1040, individuals do not have to itemize deductions to claim this deduction."
The URL is: http://www.irs.gov/newsroom/article/...154318,00.html
#3
02-12-2006, 07:28 AM
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Re: US Income Tax Deduction for 06 Prius Bought in 05
Originally Posted by AZMerf
When are they going to come up with the actual numbers and certifications?!?
Perhaps you are thinking of the decduction for the 2006 Prius bought after 01-JAN-2006? (I didn't look for that info on the IRS website, it doesn't apply to me)
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