$2,000 tax deduction for 2 new hybrid cars

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11-12-2005, 12:28 PM

Jason

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$2,000 tax deduction for 2 new hybrid cars

Quote:

The Internal Revenue Service has announced that owners of the 2006 Ford Escape Hybrid and 2006 Mercury Mariner Hybrid are eligible for a clean-burning fuel tax deduction.

Owners of the hybrid vehicles can receive up to a $2,000 deduction. The deduction is one-time and must be taken in the year the vehicle was originally used, according to a press release. After this year, the deduction for a hybrid vehicle purchase will be replaced by a tax credit, as approved in the 2005 Energy Act.

http://deseretnews.com/dn/view/0,1249,635160166,00.html

11-15-2005, 07:10 AM

nitramjr

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Re: $2,000 tax deduction for 2 new hybrid cars

Thanks for the info.

I still need to find out for sure if I can take the deduction twice since I bought both of mine in the same year.

Anyone run across that yet?

Ray

11-19-2005, 08:57 PM

debdeb

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Re: $2,000 tax deduction for 2 new hybrid cars

I certainly don't see why not. If you bought two houses in the same year, you get two deductions. The IRS web site is way behind in updating itself in regard to these tax deductions. They do not reflect the signing of the July energy bill (which is a huge joke, Bush patting himself on the back for nothing).

Deb

Quote:

Originally Posted by nitramjr

Thanks for the info.

I still need to find out for sure if I can take the deduction twice since I bought both of mine in the same year.

Anyone run across that yet?

Ray

11-20-2005, 05:04 PM

rogelio

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Re: $2,000 tax deduction for 2 new hybrid cars

What if I purchase two hybrids in one year. Do I get a dection for each one?

11-20-2005, 05:43 PM

RPCV36

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Re: $2,000 tax deduction for 2 new hybrid cars

I called the IRS and asked this exact question. The response I got was that a person can only claim the deduction once. However, I must say, he did not sound very sure of himself when he answered the question. I would definitely recommend calling the IRS and asking them yourself.

11-20-2005, 06:09 PM

nitramjr

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Re: $2,000 tax deduction for 2 new hybrid cars

Quote:

Originally Posted by RPCV36

My lawyer (does my taxes too) told me that the IRS answer line is wrong about half the time. I wouldn't go by what they say on the phone. It has to be addressed in a publication somewhere.

I bought the '05 in my wife's name and the '06 in my name - maybe each of us can take the deduction that way. I'll probably take the deduction twice unless I see in writing that I definitely can't.

Either way, maybe I'll trade in or sell the '05 in January and get another '06 for the big credit. I have a feeling hybrids could get scare come the first of the year though.