How to buy a Prius in Colorado in 2006 to get $6,000+ Discount? - Page 2 - GreenHybrid

06inOR · #11 (**permalink**) 10-17-2005, 12:48 PM

For what it's worth...

I'm not sure if it is technically tax fraud, but it is certainly unethical. CO is offering the credit to subsidize the use of low-emissions vehicles IN THEIR STATE. If all states shared a common pool of money, I would say, 'Who cares,' but since they have largely discrete budgets, I wouldn't do it. Undermining these kinds of incentives can help them all go away for the rest of us. I'm not a cop, and I'm not your mommy, so, of course, do what you want. Personally, I wouldn't. But then, I am a true freak in that I don't even mind paying taxes...!
Whatever you do, enjoy the car!
Usually, pointing out this kind of thing results in plentiful attacks on the party-pooper, but you said 'any feedback...'.

geologyrox · #12 (**permalink**) 10-17-2005, 01:21 PM

well, to be honest,i dont see it as any different than a person in CO buying a new hybrid every year this is available, and selling it, and buying another for the new tax year. if you parents will actually keep it till they file their 2006 taxes, i'd say that makes it the exact same situation. who knows, maybe they'll like it, and sell you their 2006,and buy a 2007 hybrid (i expect honda to still qualify for the tax credit in 2007, but i could be wrong - most of my research these days is on the prius)

Catskillguy · #13 (**permalink**) 10-17-2005, 07:45 PM

Yes, like it was said, it applies to any state that has also applied the Ca regs. In NY, there is also the 8 yr, 150k miles warranty on the batteries & pollution control system.

I don't know how many other states have adopted those standards.

It is also the reason the 2005 HCH was not eligible for the 2004 New York $2,000 tax credit. I believe the 2006 HCH will be in 2005 & 2006 tax year since it is AT-PSEV.

tanstaafl14 · #14 (**permalink**) 10-19-2005, 07:00 AM

Here's the easiest, most surefire way to get the tax credit you're looking for:

Move to Colorado!

infael · #15 (**permalink**) 10-19-2005, 08:20 AM

Quote:

Originally Posted by tanstaafl14

Here's the easiest, most surefire way to get the tax credit you're looking for:

Move to Colorado!

LOL! Good point!

gpsman1 · #16 (**permalink**) 01-17-2006, 10:09 PM

There is also a little lesser known fact in the state of CO.

If you buy a Hybrid, you get 75% back of the incremental cost of buying a hybrid vs. the cost of a traditional vehicle.

HOWEVER...

If you get rid of a vehicle 10 years or older at the same time, by selling it out of state, or giving proof it was sold to a salvage yard for scrap ( ie. will never be drivin again on Colorado Roads ) then you get 100% of the incremental cost back.

For me, I sold a 1993 car to someone in CA, hence, I get the full 100%, worth an extra $750 to me. My 1993 was sold for $1500, but worth $2250.

-John

AZMerf · #17 (**permalink**) 01-18-2006, 07:28 AM

Tell your parents to purchase the car and then sell it to you "used" at a $6,000 discount. You will need to figure out how long they need to keep the car in order to qualify for the the tax credits. I don't remember reading anything about this but I am sure it is stipulated somewhere.

They need to take the tax credits (which is reflected to you in the price you paid to purchase it from them) and if they don't mind "floating" you the discount for a year, it should not be considered fraud.

singingtiger · #18 (**permalink**) 01-19-2006, 05:58 PM

I am a Colorado native and purchased my Prius in Aug 04. I also taught income tax preparation to my high school students and have always prepared my own forms.

The 06 deduction/credit should be similiar to what I used in 04:

The federal deduction was $2000 in the adjusted gross income section.

For Colorado: use FYI#9 to find the table for all hybrid tax credits.
Fill out form 104CR and report result in 'income tax and credits' section

My credit was $2678 but since my total Colorado tax was 2095 I was ONLY able to use that 2095 with NO carryover. I have not yet looked at the 06 Colorado rules to see if any carryover is now available.

You do need to include a copy of the Toyota dealer invoice with the income tax papers--buying used does not qualify for any credit/deduction.

Mardikes · #19 (**permalink**) 04-24-2006, 05:30 PM

Beware also the federal credit and how it might be affected with how you work the Colorado credit.

For instance, the federal credit has a recapture requirement, should the vehicle be sold. The regs are not out, so we don't know how many years and how this will be amortized.

Also, your parents would need to take the federal credit.

One idea is for your parents to buy the car and lease it under a FMV lease.

However, if you have other than a fair market purchase option, then it would be an installment purchase triggering ownership in you.

phoebeisis · #20 (**permalink**) 04-24-2006, 06:45 PM

Won't you have to pay the sales tax twice?You'll(parents) will pay it once,and when you buy it from them,you'll have to pay it again. It would work this way in Louisiana.It would be less than $3000, but it could easily be $2000 each time.Same story on registration and Title, but this is maybe $100 or so.
Now,you might be able to claim your parents gave it to you,but this would be fraud. You could also claimed they sold it to you for some small amount.This won't work;the CA folks will look it up,and if the price is "too good" they will make you jump thru lots of hoops.This would also be fraud.
Look into the sales tax. It might be pointless, and you might miss out on some CA tax break.Luck,Charlie