Looking at new or used hybrids for sale? You've probably already
heard about a possible tax deduction when buying new or used hybrids for sale.
You may want to take a couple things into account before looking at new or
used hybrids for sale. I wouldn't buy new or used hybrids for sale
just for the tax deduction alone. It must make sense all the way across
the board. The article below should be of some help to you before making a
purchasing decision about buying new or used hybrids for sale. This
article details the outline of the IRS's qualification for a tax deduction based
on the Ford Escape Hybrid. You should check into the other guidelines for
different vehicles if you are considering any other new or used hybrids for
2005 Ford Escape Hybrid Certified For Clean-fuel Deduction
by: Richard Chapo
If you are environmentally conscious and purchase a 2005 Ford Escape
Hybrid vehicle that combines a gasoline-powered engine with alternative
power methods, you are in line for a nice tax deduction.
Ostensibly, the government uses clean power tax deductions as a method to
promote the use of vehicles that are less harmful to the environment. The
clean-fuel tax deduction is based on the incremental cost of using a vehicle
model that combines traditional gasoline-powered engines with electric
motors. The deduction is only available if the manufacturer has submitted
vehicle specifications that the IRS has agreed to qualify the vehicle as a
"Clean-Fuel Vehicle". Once this has occurred, the IRS then certifies the
vehicle as one that qualifies an owner for a tax deduction.
On December 13, 2004, the IRS certified the 2005 Ford Escape Hybrid as a
"Clean-Fuel Vehicle" for the first time. If you purchased the Ford Escape in
2004 or 2005, you may claim a tax deduction of $2,000. You must comply with
two requirements before claiming the deduction. Under current law, you must:
1. Take the deduction in the year the vehicle was originally purchased, and
2. Be the original owner, of the vehicle.
Importantly, you do not have to itemize your deductions to take advantage of
the Clean-Fuel deduction. If you are using the basic 1040 form for filing
your taxes, simply write "clean fuel" on line 33 and take the deduction.
Make sure you review the instructions for form 1040 to correctly claim the
deduction. The process is exceedingly simple.
It should be noted that the Clean-Fuel Vehicle deduction is a one-time
deduction. Further, the deduction is only available on your federal tax
return, not your state filing. Since the deduction will affect your adjusted
gross income, however, you should see an additional saving on your state tax
return since your adjusted gross income will be reduced. If you have already
filed taxes for the year in which you purchased a clean-fuel vehicle, you
should consider amending your tax returns to claim the deduction.
About The Author
Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining
tax refunds for small businesses by finding overlooked tax deductions and
credits through a free tax return review.