Quote:
Originally Posted by tcampb01
When you asked the question about the claiming the credit twice, were they aware that the first car was totaled and paid for by insurance?
The reality, I think, is that the AMT problem may bite you. You can never legally pay less taxes than the AMT system requires -- no matter how many tax credits or deductions you have or qualify for. So many people hit the limit just trying to claim it for 1 car -- it's doubtful that you'd be able to claim much (if any) for a 2nd vehicle.
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Yup. With my HCH credit my taxes paid was very close to the AMT amount. I think Luke must've been in a very unusual situation to get the total amount of both credits without the AMT reducing the benefits.
Also technically I think he should qualify. While the first car was totaled and paid for by insurance, the insurance company was essentially buying the totaled car from Luke. Unless theres a restriction/tax on resales within a certain timeframe it makes sense.
Anyone thinking it might not be fair that he benefits twice from his sitaution? Silly thinkers. The tax code was not designed to be fair. It is a complex behemoth that subsidizes certain behaviors (having kids, homeownership, agriculture, Don Mclean, apple pie, etc) and penalizes others (drinking, smoking, the self-employed, etc). If you want fairness push for a flat tax. /rant