I agree you should take 2 seperate deductions as you have bought two cars. Unfortunately one has been wrecked. But from what I read from your post it was totaled but not destroyed, so sometime, somewhere, someone will drive it again. Once your insurance company fixes it and sells it in their auctions. But if it was truely destroyed and turned over for scrap, then I would say only one deduction can be made. AS this vehicle will no longer be used again. But how are you to know if all this may or may not happen. Now your insurance company may want some of that refund because they now paid for your replacement car. But who wants to get into that area.
Remember the IRS says "The Original owner qualifies for the deduction" Even if the vehicle is sold "The second owner does not qualify"
The car is still being used as a HYBRID to the best of my knowledge. And Whether I kept the car for 1 year or 10 years the car still only qualifies for one tax deduction, and is still serving its purpose.
So as far as for the word of caution by Nathan on my other post because I want to sell my car. I can take the deduction but my buyer cant, and this is what I believe the IRS is really worried about. I really dont think they are going to be knocking on my door for the next 3 years wanting to recapture for my Prius for the $500 - $700 tax deduction that I will more in reality recieve, rather then the full $2000. Who knows whats is going to happen to the car after it leaves your control from being sold.
I think all the IRS wants is ONE HYBRID - ONE DEDUCTION
Shouldnt matter whether I am the driver/owner in the next few years or Joe-Schmoe who bought it second hand and has the same desire to help keep the air quality cleaner for his childrens future.
Remember the IRS says "The Original owner qualifies for the deduction" Even if the vehicle is sold "The second owner does not qualify"
The car is still being used as a HYBRID to the best of my knowledge. And Whether I kept the car for 1 year or 10 years the car still only qualifies for one tax deduction, and is still serving its purpose.
So as far as for the word of caution by Nathan on my other post because I want to sell my car. I can take the deduction but my buyer cant, and this is what I believe the IRS is really worried about. I really dont think they are going to be knocking on my door for the next 3 years wanting to recapture for my Prius for the $500 - $700 tax deduction that I will more in reality recieve, rather then the full $2000. Who knows whats is going to happen to the car after it leaves your control from being sold.
I think all the IRS wants is ONE HYBRID - ONE DEDUCTION
Shouldnt matter whether I am the driver/owner in the next few years or Joe-Schmoe who bought it second hand and has the same desire to help keep the air quality cleaner for his childrens future.