IRS Likes the Hybrid!
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IRS Likes the Hybrid!
Chick this out, the IRS is giving a $2000 deduction for people who bought the Toyota Prius from 2001-2003. I bet the Civic Hybrid is next...i guess thats something to make up for the lack of power. hehe. but its cool tho, those people are being environmentally conciensious, they deserve something.
Toyota Asked For It, They Got It
AccountingWEB US - Aug-21-2002 - The Internal Revenue Service has given the green light to Toyota owners to take a $2,000 above-the-line tax deduction as a prize for purchasing a 2001, 2002, or 2003 Toyota Prius.
The Prius is a gas-powered vehicle with an electric motor - a hybrid car that is the first to qualify for a new tax deduction for fuel efficient, lower emission cars.
The deduction is a one-time deduction, treated as an adjustment to income so those taxpayers driven to purchase the Prius do not have to itemize deductions to take advantage of the $2,000.
The amount of the deduction is determined by the manufacturer who received approval for the amount from the IRS after documenting the extra cost associated with outfitting the car with the electric motor and related equipment. The initial IRS ruling was set out in Revenue Procedure 2002-42, which states that the maximum amount of deduction allowed is $2,000 for vehicles placed in service through 12/31/03. After that date, the deduction is phased out over three years so that vehicles placed in service in 2007 will no longer qualify for any deduction.
The Prius retails for approximately $20,000. The actual tax benefit of the $2,000 deduction could be $300 or less for taxpayers in the lowest tax brackets, or as high as $770-$780 for taxpayers in the highest brackets. Taxpayers who purchased a Prius in 2001 and who already filed their 2001 tax return are entitled to amend the 2001 tax return to take advantage of the credit.
Toyota Asked For It, They Got It
AccountingWEB US - Aug-21-2002 - The Internal Revenue Service has given the green light to Toyota owners to take a $2,000 above-the-line tax deduction as a prize for purchasing a 2001, 2002, or 2003 Toyota Prius.
The Prius is a gas-powered vehicle with an electric motor - a hybrid car that is the first to qualify for a new tax deduction for fuel efficient, lower emission cars.
The deduction is a one-time deduction, treated as an adjustment to income so those taxpayers driven to purchase the Prius do not have to itemize deductions to take advantage of the $2,000.
The amount of the deduction is determined by the manufacturer who received approval for the amount from the IRS after documenting the extra cost associated with outfitting the car with the electric motor and related equipment. The initial IRS ruling was set out in Revenue Procedure 2002-42, which states that the maximum amount of deduction allowed is $2,000 for vehicles placed in service through 12/31/03. After that date, the deduction is phased out over three years so that vehicles placed in service in 2007 will no longer qualify for any deduction.
The Prius retails for approximately $20,000. The actual tax benefit of the $2,000 deduction could be $300 or less for taxpayers in the lowest tax brackets, or as high as $770-$780 for taxpayers in the highest brackets. Taxpayers who purchased a Prius in 2001 and who already filed their 2001 tax return are entitled to amend the 2001 tax return to take advantage of the credit.
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Click on the $2000 Federal Tax Deduction. This is old news, unless their has been a change in the way the IRS handels this deduction. (The Honda link is from 05/31/2002)
Click on the $2000 Federal Tax Deduction. This is old news, unless their has been a change in the way the IRS handels this deduction. (The Honda link is from 05/31/2002)
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[hr]Click on the $2000 Federal Tax Deduction. This is old news, unless their has been a change in the way the IRS handels this deduction. (The Honda link is from 05/31/2002) [hr]
[hr]Click on the $2000 Federal Tax Deduction. This is old news, unless their has been a change in the way the IRS handels this deduction. (The Honda link is from 05/31/2002) [hr]
Good deal. 
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Rep Power: 0 The Civic Hybrid gets $2000 back aswell...i read it at the bottom of the newspaper ad they had a few weeks ago,....
it said how the government is offering $2000 to anyone who buys this car
it said how the government is offering $2000 to anyone who buys this car
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