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IRS Certification of '05 Civic Hybrid

Created December 1, 2004, at 10:38 am by Anonymous

Well gang I have a bit of a dilemma here. I've sent documents off to my accountant about my purchase of the '05 HCH and was delivered some disappointing news.

Apparently the '05 HCH has not yet been certified by the IRS for ANY tax deductions like the '05 Prius and various other hybrid model cars.

After much time researching I'm unable to find any comments from anyone else about this or any suggestions or possibly time-lines that the IRS will even certify the car. My gut feeling says it will but the big question is will it do so before next years tax season. Next year meaning '05.

Anyone care to comment? Thanks.

Anonymous

7 years ago

It seems that you only place some words (i forget exactly what words) on one of the 1040 lines and put $2000 in the appropriate bucket to get the deduction. I don't recall seeing that you need to ID the particular vehicle you have. Obviously if audited you would want to be able to show that your (my) 2005 Honda Civic Hybrid is "certified" but I have no reason to believe that it won't eventually be certified so I plan to take the deduction. Other thoughts ??

Anonymous

7 years ago

I wrote to Honda and actually got a prompt reply. They have submitted their information to the IRS to get the '05 Civic Hybrid certified for the tax deduction.
I've seen past certification letters on the IRS website dated in January 2004, so maybe we can expect a similer letter in January 2005 for the 'O5 HCH.
The '05 and '04 models are essentially the same, so I don't expect there will be a problem.

Anonymous

7 years ago

Tonight, if my old hunk-a-junk makes the trip, I'll be driving home in an '05 HCH mt. I'm 24 and poor. I'm sort of hoping that next year I'll be able to write this purchase on my taxes. Any update? I know that this topic is more than a month old, but if you can help I'd appreciate it.

Thanks

Anonymous

7 years ago

All of us '05 HCH owners are anxiously awaiting as well. I've called the IRS and didn't get much of an answer because they were literally just going off documentation on their website.

Another fellow contributor here mentioned earlier that he'd wrote Honda about this and got a response. The other certification documents for Honda Hybrids on the IRS site are all dated January which leads me to hope something will get posted very soon.

As Pete has said, I will be marking the deduction on my tax return because "I Know" that it will be certified. As for your specific scenario, since you did not put the car into service in '04 then it is possible that you will not receive the same deduction as those of us who did purchase in '04 and put into service in '04.

We'll all have to wait and see on that one my friend. Almost all my tax forms are here and I'm pretty anxious to get this all out of the way myself.

Anonymous

7 years ago

Interesting read about 10 new Tax Law changes.
http://biz.yahoo.com/brn/050124/14975_1.html
_____

From the article:
If you purchased either a hybrid car or a fully electric auto last year, you'll continue to get the maximum tax breaks this year as a reward for your environmentally friendly driving. The deduction for hybrids and other alternative-fuel vehicles, as well as the credit for fully electric vehicles, had been scheduled to start phasing out last year, but the Working Families Tax Relief Act of 2004 postponed the reductions.

So hybrid drivers who bought their cars last year can still claim the full $2,000 deduction on their 2004 returns (as long as they file Form 1040, that is; the deduction can only be taken on line 35 of that form). And if you're going to buy an alternative-fuel auto this year, you'll also get the full deduction. In 2006, however, the deduction drops to $500 and it will disappear in 2007.

Similarly, the reduction of the tax credit for purchasers of fully electric autos is postponed until 2006. This larger tax break -- a $4,000 credit -- will remain in effect for electric cars bought in 2004 and 2005 before being phased out by 2007.

Anonymous

7 years ago

Thanks a lot for the information. I've only driven this HCH twice and I'm totally in love with it. For my first car I think it was a good choice and worth the extra money...I hope. If all goes well, I'll be able to place this on my return next year.

Anonymous

7 years ago

I read off the IRS website that of Jan. 3 the '05 HCH is not eligible for the incentive. Hopefully it will be before the end of the year.

---These are the approved vehicles---
Ford Escape Hybrid
2005
Honda Civic Hybrid
2003-2004
Honda Insight
2000-2004
Toyota Prius
2001-2005

Anonymous

7 years ago

It's already Feb and I still haven't seen anything about the IRS certifying the '05 Civic Hybrid. Does anybody know what's happening? I'm kinda scared to claim it, because I'm not sure if it'll get certified.

Anonymous

7 years ago

You aren't the only one! I've got all my tax documents filled out including the Form 1040 and I'm ready to send them off to my CPA. Worried about doing it though and what the ramifications would be if it didn't get certified.

I'm sure it will be but I guess a better question to ask is "What if I file my taxes before it is certified, even though it does get certified?"

Anonymous

7 years ago

I agree - If you file your taxes (mine will be for FY 2005) and they certify later you are covered. I wonder if there is an issue with Honda's paperwork. I am yet to buy but I am holding off. I can get an additional $2100 from the state of Colorado which helps, but double it if I scrap a car older than 10 years. $4300 tax credit plus $2000 from Uncle Sam makes it a really cheap car!

Anonymous

7 years ago

Check the newsroom section of irs.gov. The '05 HCH is now IRS certified!

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