sub3marathonman
Well-known member
First, I am currently a Prius owner with a Hymotion kit installed, and this is my first post here for the Nissan Leaf. I started to consider switching the 2nd Prius for the Nissan Leaf, and that is why I'm posting. I don't want to dim any enthusiasm for the Leaf, but if people have put a 100% trust in the government's word, I wanted to give a possible warning based on what happened to me.
Back in 2005 the Prius also had a $3750 tax credit. It was so new that I don't know if the IRS had even published the rules. But I was enthusiastic about the Prius, and besides, the government was giving this great tax credit.
Well, it wasn't EXACTLY like that. Once 2006 came and it was time to do the taxes, things had changed ever so slightly. Yes it was a "$3750 tax credit," but only under special circumstances. You had to calculate your "Tentative Minimum Tax" which was another interesting project. Then, if you did all that, you found out that if you had children and took a tax deduction for them, which is what has always been allowed, then you really didn't deserve the "$3750 tax credit" according to the government. You couldn't even carry the credit forward for another tax year, so if your financial situation changed in a future year you were still out of luck.
Now, on this dangling tax credit, it is my understanding that in order to qualify, you must have a tax bill of $7500. That would mean a taxable income, after all deductions, of about $45K if you're single, and $55K if you're married. Has anybody researched what effect any deductions have on this tax credit? And, am I correct that this credit too cannot be carried forward and must be claimed in the tax year the Leaf was purchased?
There were so many questions about the tax credit with the Prius that a special section was created just for those questions.
Back in 2005 the Prius also had a $3750 tax credit. It was so new that I don't know if the IRS had even published the rules. But I was enthusiastic about the Prius, and besides, the government was giving this great tax credit.
Well, it wasn't EXACTLY like that. Once 2006 came and it was time to do the taxes, things had changed ever so slightly. Yes it was a "$3750 tax credit," but only under special circumstances. You had to calculate your "Tentative Minimum Tax" which was another interesting project. Then, if you did all that, you found out that if you had children and took a tax deduction for them, which is what has always been allowed, then you really didn't deserve the "$3750 tax credit" according to the government. You couldn't even carry the credit forward for another tax year, so if your financial situation changed in a future year you were still out of luck.
Now, on this dangling tax credit, it is my understanding that in order to qualify, you must have a tax bill of $7500. That would mean a taxable income, after all deductions, of about $45K if you're single, and $55K if you're married. Has anybody researched what effect any deductions have on this tax credit? And, am I correct that this credit too cannot be carried forward and must be claimed in the tax year the Leaf was purchased?
There were so many questions about the tax credit with the Prius that a special section was created just for those questions.