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  1. #1
    Junior Member
    Join Date
    Mar 2007
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    0

    Recapture penalty for selling a Hybrid

    I'm having a tough time finding any information proving the government will impose a recapture penalty if you sell a Hybrid after 1 year, 2 years, etc.

    This is important as I figure a Civic Hybrid with the tax credit will drop my taxes owed by a significant margin. I can put up with the car for maybe a year or two but after driving rwd inline 6s with manuals for years, the Civic is more a stopgap until i buy another fun car in 09-10.

  2. #2
    Guest

    Call and ask

    The IRS has a toll-free help line open from 7 a.m. to 10 p.m. your local time Monday through Friday: 1-800-829-1040. I've actually called before and received detailed information about a complicated question.

    If you do call, please let us know what they say. All I could find was "the tax law states that taxpayers will need to recapture the tax credit if the hybrid is sold to another party. The IRS will clarify how long people need to own the car in order to avoid the recapture rules." On the IRS site (irs.gov) I couldn't find any specific answer to the length of time, either.

    Good luck!

  3. #3
    Junior Member
    Join Date
    Mar 2007
    Posts
    0
    I called the IRS and they simply didn't know. The CSR requested an answer from up high and that will take 15 business days.

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