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Originally Posted by pete4www
Hi, I have a question about the federal tax rebate. The $2000 rebate ends this year, and drops to $500 starting 2006 from what I've read. My question is; what if for example, I buy a 2006 Honda Civic Hybrid at the end of 2005? Even though it's a 2006 model, can I still get the $2000 tax rebate since I bought it before the year 2006? Thanks.
-Pete
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I can't speak for the "scheduling," but I must alert you to the awful truth about this thing....it's not a "rebate".
It's a deduction. You deduct $2000 (or whatever the value is) from your taxable income,
not from your tax bill. Depending on your particular marginal tax rate, you will save 15%, 20%, 28% or so off of your taxes. For example, if you are in the 28% marginal tax bracket, you will save $2000 X .28 = $560.00
If I'm correct, it's applied in the tax year in which you purchased the vehicle. For example, if you bought it in November, 2005, then it gets calculated for your 2005 tax return due on 4/15/2006. On the other hand, if you buy the car on January 1st, 2006, then it's a tax event that goes on your 2006 return, due on 4/15/2007.
Somebody please correct me if I'm wrong in anything I've said....
EDIT: I see now, I have responded to a thread that has other responses in it already. I thought there were zero responses. What gives? This is the second time this has happened to me on this forum...