so is $2000 the cap for deduction, or if i purchased two hybrid vehicles, can i deduct $4000? anyone know?
When I called the IRS last summer to ask them, they left me on hold for a while and returned saying that there was no limit to the number of times you could take the $2,000 tax deduction. You could buy two, new 2005 Prius this year and deduct $4,000.00. Or a Prius and a 400h, Civic, Highlander Hybrid.. whatever.
Does the Prius have to be in my possesion to take the deduction? I'm thinking of selling it and buying a new one before the end of the year. Would I then be able to take a $4,000 deduction?
Don't see why it would have to be in your possession as the deduction only applies to the first owner who puts the car in service. You don't get the deduction for a used one. Hey, if this applies there might be a business here - buy all the prius's you can find and flip them pocketing a large deduction for each one you flip.
Check the Energy bill that just passed. You might want to wait for the new Prius and take the 2K+ tax CREDIT!
No. The only requirement is that the person claiming the deduction(s) is the original purchaser. Keep all your records after you've sold the car to prove that you bought it originally. There are no other stipulations in the tax law. I did go through all this with the IRS.
Re: Can I get TWO $2000 tax deductions if i bought TWO hybri I took a $2000 hybrid deduction for a 2001 TRAC Pruis we bought (demo with no previous owner on the title) and more recently $4000 as a page 1 credit on our 2005 taxes for two 2004 Prius we bought new and drove in 2004. So far, nobody from the IRS has followed up. The rule is only the first titled owner gets the deduction the first year of ownership and it has to be "wheels on ground" during the year claimed. As noted, it will now be a better deal to wait after Jan 1, 2006 to get a credit for the hybrid purchase. Both the Lexus 400H and the Highlander Hybrid now looks now they will be more reasonable and therefore be in short supply the first 7 months or so of 2006 (my opinion), until Toyota hits the manufacturing cap.
Re: Can I get TWO $2000 tax deductions if i bought TWO hybri outoftown - so when you deducted this on your fed tax return, did you attach any supporting documentation, or include a little note, or ?
