[volzcpa]

The IRS announced today that the 2005 Prius has been certified as eligible for the clean-burning fuel deduction.

Also, under the recently signed Working Families Tax Relief Act of 2004, the clean-burning fuel deduction is up to $2,000 for certified vehicles first put into service in 2004 and 2005. The deduction will be limited to $500 for vehicles placed in service in 2006 and no deduction will be allowed after that year.

Every little bit helps.

Peace

--Jim Volz

 

[LouieNet]

references

From http://www.irs.gov for everyone's reference:

• 2005 Toyota Prius Certified for Clean-Fuel Deduction; New Law Restores Full Deduction Amount for 2004 and 2005
  Clean-Fuel Vehicle Deduction Available for Certain Toyota and Honda Models
  2004 Toyota Prius Certified for Clean-Burning Fuel Deduction

Form 1040X — Amended U.S. Individual Income Tax Return is also available online.

 

[WhitePrius]

tax deduction

so if it is first put on the road in 2004 or 2005, does that mean you get $2000 back, not $1500...the up to $2000 confuses me...

 

[Rich D.]

From the irs web site:

# Clean fuel vehicle deduction — the maximum amount of this deduction was scheduled to drop this year and next, but has been retained at the $2,000 level through 2005. IR-2004-125 has information on this deduction and the newest vehicle to qualify for it.

Yippie

 

[DanMan32]

Yup. Also, of 2005 hybrids, only the Prius has been approved for the deduction. I would expect the Honda hybrids will be approved by end of January, as they were last (actually this) year.

 

[LouieNet]

Re: tax deduction

so if it is first put on the road in 2004 or 2005, does that mean you get $2000 back, not $1500...the up to $2000 confuses me...

A point of clarification....it's not a tax credit. It's a deduction.

Louie

 

[AgentElrond]

Correct; you get to take $2000 off your income. How much that reduces your taxes depends on your tax bracket.

 

[royal28]

Has anyone heard if the new V6 Accord Hybrid is going to be eligible for the tax credit?