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hello Everybody!!!! I want to buy a Prii as soon as posible. i went today to some dealers and they told me that i can get a Prii in about 4 to 8 weeks. what i want to know is until when i can take advantage of the IRS credit! and i want to finance the Prii along with my fiance. how i am going to do about the IRS credit? we can apply for that togheter or only one has to do it. Thank you for your help ! your forum help us decide to buy a Prii! we uant to get the white one with pkg#1or 2or3! what do you recomend? because we are not going to use all the functions of the other packages, and we want to save some money!
Thank you!!!!
 

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Full federal credit is available if you take delivery by sept. 30th. It reduces 50% after that, which is still a great deal compared to what you actually got on a $2000 deduction, which was about $500.

You'll take the credit on your 2006 income tax form (I think there's another form you have to file with the 1040), so however you'll be doing your taxes in 2007 for 2006 (jointly, separately, etc) is how you'll claim the credit.
 

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Beginning Jan. 1, 2006, there is a new US Federal Income Tax credit (reduction of the amount you owe) for hybrid vehicles. The amount of the credit is based on what hybrid you purchased (full credit amount for the 2005 and 2006 Prius is $3150) and when you purchase it. In the calendar quarter following the quarter that a manufacturer reaches 60,000 hybrids sold, the credit amount drops to 50% of full. after another 2 quarters, it drops to 25% of full. after another 2 quarters, no more credit for that manufacturer.

Toyota/Lexus/Scion sold 60,000 hybrids in Q2 of 2006, so the full credit amount for their hybrids is allowed for purchases from Jan. 1, 2006 through Sept. 30, 2006, then 1/2 of that for purchases from Oct. 1, 2006 through March 31, 2007, then...

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

http://www.irs.gov/newsroom/article/0,, ... 57,00.html
http://www.irs.gov/newsroom/article/0,, ... 32,00.html
http://www.irs.gov/newsroom/article/0,, ... 48,00.html
 

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I'm going to trust Michelle on the way the IRS is doing the credit. However the tax software manufacturers are already working on somehow making this credit work. The declining balance nature of the credit doesn't make any sense to me, at least in terms of getting folks into hybrids, but it is the nonsensical way the Congress decided to do it this year.

You can finance a car just about any way you want. Including having both yourself and your fiance on the note and security agreement. However with a car, which is personal property, I wouldn't do that, unless you absolutly need both of your incomes calculated into the lending equation to be able to qualify. If you have to do that, well, I'm not so sure that you should be buying a new car because your debt load at that point is huge.

Depending on what state you are in you may not be able to place both of your names on the title. That may also complicate the lending process as one of you holds title and the other does not, but both have a debt obligation. That is an unadvisable situation.

As for the tax credit, until you two are married, you cannot file jointly. That means one of you can claim the credit and the other cannot.

At this time, I think it is advisable that one of you do the purchase of the vehicle, by having the car placed in one name, having the lending done in one name and fileing for the tax credit under the person who holds title and the loan.

As for vehicle delievery times. Shop around, widen your search radius, find some rural dealers. Rural dealers may have units on the lot waiting to be sold and rural dealers may be able to order in the exact vehicle you want in a shorter period of time than an urban dealer.
 

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As for the tax credit, until you two are married, you cannot file jointly. That means one of you can claim the credit and the other cannot.
Well, that all depends on when they get married. If they get married by December 31st, they can file for 2006 as a married couple, either jointly or separately like any other married couple.

I have to agree though, it is never a good idea to get into a financial tie until you are actually married. If you can't afford the car yourself, it may not be the time to get it, as you'll have lots of other big expenses ahead of you as you tie the knot. If you can afford it, you can put the car in both your names once you are married.
 

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Hmm...since we're discussing tax credits, I have a question:

If, normally, I get tax refunds every year, and nothing has changed significantly with my status or tax bracket, should I receive the $3,150 back in full? Or is there something I'm not taking into account?

I should be getting my car in Sept before the deadline, and was considering putting the 3150 down now, since it would save me more in payments that I could earn in interest in a savings account over the few months that I'd have the money out.
 

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quagmire0 said:
Hmm...since we're discussing tax credits, I have a question:

If, normally, I get tax refunds every year, and nothing has changed significantly with my status or tax bracket, should I receive the $3,150 back in full? Or is there something I'm not taking into account?

I should be getting my car in Sept before the deadline, and was considering putting the 3150 down now, since it would save me more in payments that I could earn in interest in a savings account over the few months that I'd have the money out.
BETTER to check with whomever does your taxes.......... As far as I understand the Tax Credit is on "Taxes Owed" ...........Hence if you don't "Owe" taxes you don't have a Credit!!!
 

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All of us prepay the taxes owed in the form of tax withholdings.
So what happens is, instead of overpaying say $100, you now overpaid $3,250, assuming the tax you owed is greater than $3150 and you don't get hit with the alternative minimum tax. You would probably get hit with ATM before you ended up with a negative tax liability anyway, so it probably won't matter if your liability is smaller than the credit.
 
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