Toyota Prius Forum banner

1 - 3 of 3 Posts

·
Registered
Joined
·
1 Posts
Discussion Starter · #1 ·
I am looking into buying a 2006 Prius and have done quite a bit of research over the past few weeks. One of the things that I came across is the new tax act that was just signed into legislature stating that vehicles such as the Prius that are "placed in service" after January 1st, 2006 are eligible for a tax credit. Does anyone know the definition of "placed in service"? I've read different opinions on what this really means. Some say that it is when you put your money down to be put on the waiting list and some say that it's when you actually close the deal and drive it off the lot. If it's when you drive it off the lot, then I'll want to get on the list ASAP, as I understand that there is a limit on how many credits will be granted. But, if it is when you put your money down, then I guess I'll be standing in line on January 1st.

Any info is much appreciated.

Luke
 

·
Registered
Joined
·
736 Posts
Placed in Service

Unless there is something weird with the legislation, "placed in service" would mean when you start using it. For business use of a vehicle, I used the day following my delivery, which was in the evening, in reporting vehicle expenses. I'm guessing that in the case of some fleet operators, they might have a stock of vehicles just sitting for a period of time before they are needed and placed in service. A tax professional would probably be your best source.
 

·
Registered
Joined
·
2,243 Posts
It's when the dealer has your money, and you have the car. You're "in service" when you drive off the dealer's lot.
 
1 - 3 of 3 Posts
Top