patrnflyr Posted April 22, 2005 Share Posted April 22, 2005 This is my first post on this forum but I've been following for quite awhile. Could someone tell me if there are any tax incentives for purchasing a 400H. I've found in the IRS (publication 535 section 12) a $2000 deduction for clean-fuel vehicle, but that's about it. Supposedly, there are many more. The reason for asking is that I own a '04 RX 330 and could get my hands on a 400H in about 10 weeks that was offered to me. It's hard to justify the $$$ difference if you only consider the mpg, wow factor and acceleration. I driven a 400H a couple of times the last few days and am really impressed. I need to make the decision quickly so I would really appreciate it if anybody can help me. Most of the people on this forum are business gurus and know the tax codes as well as their CPA's. BTW, I usually deduct about 1800 miles/yr for business expense and usually put 20,000 miles/yr total. Thanks in advance for your help!!! John S. Johnson, Lubbock, TX Quote Link to comment Share on other sites More sharing options...
LexKid630 Posted April 22, 2005 Share Posted April 22, 2005 I pre-ordered my 400h last year and asked that same question to my dealer..They didn't have a straight answer for me so i'l still looking into that. All i do know for a fact is that there are few states that actually let you drive on a seperate road in traffic if you have a hybird Quote Link to comment Share on other sites More sharing options...
Unlisted Posted April 22, 2005 Share Posted April 22, 2005 a one time deduction up to $2000. is available under the working families tax relief act. appliacable only to new car buyers. The law was suppose to phase out but was extended to atleast the end of this year . Quote Link to comment Share on other sites More sharing options...
patrnflyr Posted April 22, 2005 Author Share Posted April 22, 2005 Yeah, that's the only deduction that I could find, but someone mentioned that they thought there might be some kind of mileage deduction. Texas is one of the few states that doesn't have an income tax. I was told you can also write off the sales tax again this year. Thanks for your help and if anybody else can chime in, I'd greatly appreciate it. Quote Link to comment Share on other sites More sharing options...
RAID10 Posted April 22, 2005 Share Posted April 22, 2005 This is my first post on this forum but I've been following for quite awhile. Could someone tell me if there are any tax incentives for purchasing a 400H. I've found in the IRS (publication 535 section 12) a $2000 deduction for clean-fuel vehicle, but that's about it. Supposedly, there are many more. The reason for asking is that I own a '04 RX 330 and could get my hands on a 400H in about 10 weeks that was offered to me. It's hard to justify the $$$ difference if you only consider the mpg, wow factor and acceleration. I driven a 400H a couple of times the last few days and am really impressed. I need to make the decision quickly so I would really appreciate it if anybody can help me. Most of the people on this forum are business gurus and know the tax codes as well as their CPA's. BTW, I usually deduct about 1800 miles/yr for business expense and usually put 20,000 miles/yr total. Thanks in advance for your help!!! John S. Johnson, Lubbock, TX ← The federal tax deduction is good for this year but the IRS lists the cars it is applicable to and of course the 400h is not on the list. Hard to say if the Feds will add this car to the list. Some states let hybrids use the HOV high occupancy lanes in their state with one person. Quote Link to comment Share on other sites More sharing options...
RedStripe Posted April 22, 2005 Share Posted April 22, 2005 Yeah, that's the only deduction that I could find, but someone mentioned that they thought there might be some kind of mileage deduction. Texas is one of the few states that doesn't have an income tax. I was told you can also write off the sales tax again this year. Thanks for your help and if anybody else can chime in, I'd greatly appreciate it. ← Any mileage deduction you might be thinking about would be applicable to all cars or vehicles. I have never seen or heard of a unique deduction for "clean-fuel" vehicles. Patrnflyr, please email or PM me, I have some info you might be interested in. Thanks. Quote Link to comment Share on other sites More sharing options...
patrnflyr Posted April 22, 2005 Author Share Posted April 22, 2005 Tried to email you but said I wasn't allowed. Thanks for your help anyway. I know you can also park free of charge in certain cities along with HOV lanes, etc. I think the only thing tax wise I've seen in all the literature is the $2000 deduction and sales tax which all cars get now anyway. Quote Link to comment Share on other sites More sharing options...
patt Posted April 22, 2005 Share Posted April 22, 2005 The IRS has to review the car to put it on the list. The annoucement that the Escape was allowed came in December 04. Since they are allowing the Ford Escape, it seems likely that the Rx400H will get on the list, but I don't know how long it takes for them to update the list. Does anyone know how the deduction interacts with AMT? It won't help a lot of us if it reduces the income for the regular tax calculation but doesn't reduce the income for AMT. Quote Link to comment Share on other sites More sharing options...
brianlbailey Posted May 14, 2006 Share Posted May 14, 2006 Don't know the AMT interactions but I think the 400h will put $2200 (Federal) back in your wallet.... Tax credit, not deduction. http://go.ucsusa.org/hybridcenter/incentives.cfm#Fed State incentives could apply as well. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.