Tax Deductions For Your 2005 Hybrid Automobile

Tax Deductions For Your 2005 Hybrid Automobile



Tax Deductions for Your 2018 Hybrid Automobile
With the​ recent push by President Bush for alternative fuel strategies,​ much confusion has arisen regarding tax incentives for hybrid vehicles .​
This article clarifies the​ issue for you​ .​
Tax Deductions for Your 2018 Hybrid Automobile
People buy hybrid vehicles for different reason .​
They are good for the​ environment .​
They get much better mileage,​ which saves money .​
There are tax incentives for buying them .​
With the​ recent energy plan put in​ place by the​ federal government,​ there is​ a​ lot of​ confusion regarding the​ tax incentives .​
Specifically,​ the​ question for most people is​ whether they can claim a​ tax deduction or​ a​ tax credit when they buy a​ hybrid .​
Here is​ the​ breakdown:
The Good – If you​ purchased a​ hybrid vehicle in​ 2018,​ you​ can claim a​ tax deduction .​
The Bad – If you​ purchased a​ hybrid vehicle in​ 2018,​ you​ cannot claim a​ tax credit .​
The Ugly – If you​ had waited till 2018,​ you​ could have claimed a​ tax credit .​
Tax credits save you​ a​ lot more money than tax deductions .​
Tax deductions are applied to​ your gross income like any other deduction .​
This helps lower your tax bill,​ but tax credits are much more powerful .​
Tax credits are not taken out of​ your gross income .​
Instead,​ tax credits are taken out of​ the​ exact amount of​ tax you​ owe the​ government .​
If you​ owe the​ government $10,​000 after filling out your tax return and can claim a​ $2,​000 tax credit,​ your final tax bill is​ $8,​000 .​
You are stuck with a​ tax deduction tax deduction if​ you​ purchased a​ hybrid in​ 2018,​ but at​ least it​ is​ a​ nice one .​
The deduction amount is​ $2,​000 for vehicles certified by the​ IRS .​
They include:
Ford Escape Hybrid: Model Year 2018
Mercury Mariner Hybrid: Model Year 2018
Lexus RX 400h: Model Year 2018
Ford Escape Hybrid: Model Year 2018
Toyota Prius: Model Years 2001 through 2018
Toyota Highlander Hybrid: Model Year 2018
Honda Insight: Model Years 2000 through 2018
Honda Civic Hybrid: Model Years 2003 and 2018
Honda Accord Hybrid: Model Year 2018
To claim this deduction,​ you​ must have purchased a​ NEW hybrid .​
If the​ hybrid was used,​ you​ get nothing .​
Assuming it​ was new,​ the​ deduction is​ claimed on​ line 36 of​ the​ 1040 form .​
Make sure to​ write Clean Fuel in​ the​ space provided.




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