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Prices Paid: Buying & Leasing Experiences 2004-2009 Toyota Prius Prices Paid and Buying Experience
1971 messages, Last post on Sep 10, 2009 at 9:17 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: cybernut04 (Apr 24, 2006 5:43 am) |
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Replying to: jrct9454 (Apr 24, 2006 5:12 am) |
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I'm not too knowledgeable on tax matters and on th $3000.00 Prius tax credit i've received conflicting answers. Hopefully someone can provide the correct answer. One source stated that if my income were $50,000 I would deduct the tax credit and my gross income would be $47,000. My total tax liability plus any further tax deductions(not credits)would be based upon the lower figure. Another source said that if my total tax liability was $10,000(based upon $50,0000) applying the credit would reduce that to $7000. I'd like to think this is correct. Thanks for your help. |
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Replying to: KarenS (Feb 17, 2006 6:38 am) |
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...I'm going to try one more time, then I'm done. -Your tax liability is the total tax as calculated on the form 1040. It is irrelevant for this discussion whether you had $1 in withholding or $1 million. Your withholding, or estimated tax payments, if you're smart, should approximately equal your TAX LIABILITY in any given year...otherwise, you're making the govt an interest-free loan. Lots of people do, which is why refunds are so high, but this is why the discussion gets complicated. When I say "tax liability" I mean your net level of taxation for any given year...NOT how much you owe as a result of underpayment, or how much they owe you on account of overpayment. -In the example I used, and cited by Cybernut, his logic is correct. Gross income minus deductions equals adjusted gross income. AGI is then used to calculate your TAX. Then CREDITS are subjected from the tax to give your NET TAX LIABILITY. [How much you have already paid in withholding or estimated tax payments then equals a refund or amount owed.] The hybrid credit is taken as the last credit to calculate your net tax....but cannot reduce your net tax below zero. And if you're subject to the AMT, you can lose the value of certain deductions and credits, including this one. If you have fully funded your tax liability through withholding or estimated payments, and if the credit applies, then yes, your refund would increase by the $3000 of the credit. -As for the form, the one online now is indeed for the 2005 tax year; there will be a new one for the 2006 tax year, which hasn't been posted yet. I was merely trying to address the question of multiple credits - the current form seems to allow for multiple deductions under the old law, and I know of nothing in the new law that prohibits multiple credits, as long as your tax liability doesn't go below zero. We shall see when the final version for 2006 is drafted. It's simple. DEDUCTIONS reduce your income that is used to calculate your tax. CREDITS are applied after you've calculated your TAX, giving your net TAX LIABILITY. How much you owe or get back is based on how much you paid during the year. Some people like big refunds; I'm not one of them, and try to arrange our payments and liability to match within $50 in any given year....but that point is not really relevant to the discussion. -Gross Income: $60,000 -Standard Deduction [or itemized, whatever]: -$10,300 for joint filing -Personal Exemptions: -$3,300 x2 for a childless couple = -$6,600 -Other Allowable Deductions: IRAs? Whatever? -$5,000 -AGI= $60000-10300-6600-5000= $38100 -Tax for a joint return = $4960 [Gross liability before credits] -Hybid Credit = -$3000 -Net Tax Liability = $4960-3000 = $1960 (The hybrid credit CANNOT reduce this number below zero.) (Then, and only then, does the question of how much you've already paid enter the discussion. If you paid $5000 through the year, your refund in this case would be $5000-1960 = $3140.) |
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| ...before our host jumps in, and reminds us this discussion is supposed to be about prices paid, I'll mention that we bought our '06 Pkg 1 car in mid-February in the Portland OR area for MSRP. In our case, that was about $23k. Because we can take the full credit, both by timing and our tax situation for this year, our net cost for this car was about $20,000 US. I don't think anything else can touch it at this price for overall utility and economy in one package. | |
| Just put down a deposit on a #3 with Z1 (mats, cargo mat, first aid kit) and rear bumber applique. Final price is $23,300, almost 1K below invoice with the additions. Just couldn't find a pkg 1, and with these addtions, my price is pretty close to the pkg 1 MSRP, so I'm tickled! Spent a long while negotiating with several dealers in several states in the northeast, some of which are telling me they are going back to MSRP since gas is so high and demand is increasing again. Anyway, thakns to all who've posteed- it really helped me out! | |
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Replying to: peteski1 (Apr 26, 2006 1:20 pm) Are there really that many more enviro-loving drivers here in CA? Is the Prius a very popular car in the Northeast? It seems popular here, but it's not like everyone wants one. I just don't understand the supply-demand gap. |
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Replying to: cooljw (Apr 26, 2006 8:19 pm) I think two things. Biggest is CA offers HOV privilege not offered in most states. Second snow is a problem with the Prius as it is sold. I understand if you put snow tires on they are pretty good in snow. Also, cold temps take a big bite out of the FE. PS It would pay you to shop online. There are deals and you could have a vacation driving your new Prius from where ever you bought it. |
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We ordered an '06 Prius, package #6, on March 25th and it was delivered on April 12th. Paid $1300 less than MSRP and got Kelly Blue Book for our trade-in, so I was happy with the deal. Miller Toyota, Manassas, Virginia. I checked their online inventory this morning ... not one Prius listed, but I'm sure they'll be getting more in. Hybrids (especially the Prius and Honda Civic Hybrid) are extremely popular in Northern Virginia, since they are allowed in the HOV lanes.
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