Tax Information And Guide

Tax Software John Johnson just found another reason to love his Honda Insight. Besides great gas mileage and low emissions, the car may net him a $600 federal tax refund this year. The Insight was one of three hybrid vehicles recently approved for a new tax break from the Internal Revenue Service.

5. Theres a federal tax deduction for hybrid cars; the new hybrid car tax credit is divided into two parts with tax credits ranging from $400 to $3400. The great news is that a credit is much better than a deduction since the credit does reduce the taxes that are owed. The deduction simply reduces the amount of taxable income.

Software Tax "It's great," said Johnson, an Ann Arbor, Mich., engineer. "With the deduction, the cost of these (hybrid) vehicles is getting into the range of an ordinary gas-powered car."

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Every Landlord Tax Deduction Indeed, the combination of new technology and new tax breaks has created a lucrative opportunity this year for car buyers who opt to purchase a low-emission hybrid vehicle.

There are certainly many more related details and issues to consider. For additional information on tax breaks for education, .

Tax Help The IRS recently approved three cars for a special $2,000 tax deduction: the Toyota Prius, a hybrid version of Honda's popular Civic, and the Insight. The deduction can be applied against the car owner's income for the year in which the car was purchased, even if that was as long as three years ago. IRS officials won't say whether they are considering additional cars for this deduction.

Read the family finance guide from Moneynet.co.uk, providing information on family finance issues such as child trust funds (CTF's) and child tax credits.

Help Tax The hybrid cars, which are powered by a combination of gasoline and electricity, are covered by a 1993 law offering tax deductions for "clean-fuel vehicles." The law has been largely unused because it wasn't clear which cars would qualify for the break.

There are numerous opportunities to save money on your personal taxes and personal property taxes. Buying or refinancing a home, contributing to a regular or Roth IRA, investing in higher education, personal property tax, or riding the Wall Street rollercoaster all present you with potential tax exemption breaks. If you become familiar with the rules and keep up with the annual tax and personal property taxes changes, you will be able to take advantage of all the tax exemptions and breaks available to you

Ernst Ernst Guide Guide Tax The clean-fuel vehicle deduction is a so-called "before-the-line" write-off, which means it can be claimed regardless of whether you itemize deductions, reducing by $2,000 the amount of income subject to taxation, said Jim Rivin, partner at Woodland Hills, Calif., accounting firm Rivin, Wenzel & Co. That can save someone in the 31 percent tax bracket $620.

Tax Return The one-time deduction is claimed in the year the car was purchased. And the Prius and Insight models released in 2001, 2002 and 2003 qualify, officials said. (The Civic hybrid was just released.) However, those who bought hybrid vehicles in a previous tax year must file an amended tax return.

Return Tax The deduction is temporary. It starts to phase out in the 2004 tax year. Moreover, said Jim Carlin, partner with Los Angeles tax law and accounting firm Holthouse Carlin & Van Trigt, taxpayers who resell their hybrid during the first three years of ownership must "recapture" all or a portion of the deduction, adding a portion of the deduction back in.

Guide Guide Master Master Tax Kathy Kristof
Los Angeles Times - 9/28/2002

Topic: Transportation

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