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Discussion Starter · #1 ·
I understand that the 2006 tax credit will ONLY apply to the first 60,000 units sold in the US. So, if this is true, how to you document that you bought one of the qualifying vehicles? Is the dealer suppose to give you a piece of paper to document that the purchase is for one of the 60,000 vehicles? I hope to pickup my 2006 in early January. Since the tax credit will not actually received until after April 2007, I don't want to find out then that I'm missing the documention to receive the tax credit.
 

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I believe it is determined by the VIN. The last several digits indicate when it was produced (I believe it's the number off the assembly line if you will).

I have read this in priuschat.com anyway.

I don't believe you'll get any "paperwork" from the dealer.

I'm not 100% sure on the paperwork though as mine is not due in until early next week.

But from everything I've read and the popular opinion on PC, ALL should qualify and be just fine within the first 2 quarters of the year judging by the average amount sold. And a lot of folks seem to think it will qualify into the 3rd quarter too.

Hope that helps,

Aaron
 

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I am curious too

Yeah how do they know when you bought it. Are you sure that you have to wait until 2007 to get the credit? Anyone who can help please do! :)
 

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you get the full credit if you buy during the quarter that 60K Prii are sold, and for one quarter after that.

then it starts to decrease.

i don't know how they'll ask you to prove it.

prius2006rocks, you have to wait until you file your 2006 taxes to take the credit. that's going to end up being the year 2007.
 

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Re: I am curious too

prius2006rocks said:
Yeah how do they know when you bought it. Are you sure that you have to wait until 2007 to get the credit? Anyone who can help please do! :)
I'm guessing the IRS will need the paperwork that shows the date you took possession of the car. It's that date that determines whether you get the credit or not.

The credit is for your 2006 taxes, which means that, in general, you will not see credit until you settle your taxes in 2007.

Some people have suggested that, if circumstances warrant, you can decrease the amount of tax withheld from your pay starting in January 2006. Then you would get some of the benefit of the tax credit in 2006. If you do your own taxes, then you know all about the danger of under withholding taxes. You have to be careful about that. Otherwise, consult a tax person.

I have determined that I can safely reduce my withholding tax by about $150/month. So I will see about half of the credit during 2006. I'm pretty conservative when it comes to paying taxes! I'll just review my tax situation mid-year; maybe I can reduce the withholding even more!

If you are not familiar with the tax codes, definitely consult someone who is.
 

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ElectronMotion said:
I understand that the 2006 tax credit will ONLY apply to the first 60,000 units sold in the US. So, if this is true, how to you document that you bought one of the qualifying vehicles? Is the dealer suppose to give you a piece of paper to document that the purchase is for one of the 60,000 vehicles? I hope to pickup my 2006 in early January. Since the tax credit will not actually received until after April 2007, I don't want to find out then that I'm missing the documention to receive the tax credit.
The tax credit applies to vehicles sold during a certain time period, not just a specific number of units.

You qualify for the full tax credit for one calendar quarter past the quarter that the 60,000th unit was sold. So if the 60,000th is sold in Q2, then the full credit extends for units sold through Q3. You (and me too) will have no problem with a January delivery.

Toyota will probably have to provide us with some type of documentation when we buy the car. The important piece of information is the date we buy the car. If nothing else, our sales contract has that bit of info. Just need to save the documents to file our 2006 taxes in 2007.
 

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Discussion Starter · #7 ·
Thanks to all that replied...

Thanks for all the replies about the 2006 tax credit. I especially like the one about reducing my withholding taxes next year in order to get some if not all of the tax credit now rather than waiting until April 2007.

I definitely will drink from that cup! :D
 

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Re: Thanks to all that replied...

ElectronMotion said:
Thanks for all the replies about the 2006 tax credit. I especially like the one about reducing my withholding taxes next year in order to get some if not all of the tax credit now rather than waiting until April 2007.

I definitely will drink from that cup! :D
Uhhh, caveat emptor:

"What Congress giveth, Congress can taketh away"

I recall that when I loaded TurboTax, some of the information was continually updating every time I accessed it to input data. Congress DOES make changes right up to filing dates.

I just prefer to err on the side of caution...YMMV

Walt (never trust a 'citizen' after they get elected)
 

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tax credit

I wouldn't worry much about a repeal, particularly since consumers are relying on the existence of the credit in making car-buying decisions. But I would keep an eye on how the IRS interprets it.
 

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Re: tax credit

sjerseycraig said:
I wouldn't worry much about a repeal, particularly since consumers are relying on the existence of the credit in making car-buying decisions. But I would keep an eye on how the IRS interprets it.
I dunno, midterms are coming up next fall and the new set of elected enemies, er, I mean representatives will be seated in time to disturb things :roll: :roll: :wink:
 

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Re: tax credit

I dunno, midterms are coming up next fall and the new set of elected enemies, er, I mean representatives will be seated in time to disturb things :roll: :roll: :wink:
Actually, they won't. The new Congress is seated on January 3, 2007. Since the tax year ended 3 days earlier, it is very unlikely that any changes could be enacted in time to apply to the 2006 tax year.[/code]
 

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I am purchasing a new 2005 model Prius in January (the dealer is holding it for me so that the purchase date will be in 2006). My understanding is the car must be purchased in 2006, but that it doesn't matter if it is a 2005 model year. I hope that's true!
 

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Re: tax credit

sjerseycraig said:
Sarah,

what you were told -- that a 2005 model qualifies for the tax credit if first placed in service in 2006 - appears to be correct. Let's hope Toyota knows what it is talking about!

http://www.toyota.com/prius/tax.html
Hello sjerseycraig: What is Toyota saying ? you mentioned above: Let's hope Toyota knows what it is talking about ? I do not see any post as to what is Toyota saying ? Can you point me to that subject ?
 
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