Lexus RX 400h Luxury Hybrid Vehicle Is Eligible for up to $2,000 Tax Deduction
#1
05-06-2005, 10:04 PM
Lexus RX 400h Luxury Hybrid Vehicle Is Eligible for up to $2,000 Tax Deduction
May 6, 2005 - - Lexus announced today that it had received official notification from the Internal Revenue Service (IRS) that the 2006 model year RX 400h is certified for a clean-burning fuel deduction. This certification means that taxpayers who purchase a new RX 400h during calendar year 2005 may claim a tax deduction of up to $2,000 on Form 1040.
"Lexus RX 400h purchasers can use or take this certification to their individual tax advisors to determine how they can take full advantage of this important federal tax benefit," said Bob Carter, Lexus group vice president and general manager.
Under the Working Families Relief Act of 2004, the clean-burning fuel deduction is limited to up to $2,000 for certified vehicles first put into service in 2005 and $500 for vehicles placed in service in 2006. Currently, no tax deduction will be allowed by the IRS after 2006.
Federal law allows individuals to claim a deduction for the incremental cost of buying a motor vehicle that is propelled by a clean-burning fuel. In a May 5, 2005 statement, the IRS stated that, "By combining electric motors with a gasoline engine, hybrid vehicles obtain greater fuel efficiency and produce fewer emissions than similar vehicles powered solely by conventional gasoline-powered engines."
This one-time deduction is for purchasers only and must be taken in the year the vehicle is put into service. The IRS does not allow the deduction for lessees. The taxpayer must be the original owner and individuals do not have to itemize deductions on their tax return to claim this deduction. This benefit can be taken as an adjustment to income on the 1040 Form.
#2
05-07-2005, 07:16 AM
Re: Lexus RX 400h Luxury Hybrid Vehicle Is Eligible for up to $2,000 Tax Deduction
Hi Jason:
___I am getting really tired of this tax deduction for luxury automobiles myself. It is not nearly as bad as an H2 owner receiving a larger business deduction as was the case a few years ago but a $49,185 automobile owner receiving a tax deduction for the RXh which has an EPA rating of just 31/27?
___It would be better for all if the US government allowed a $2,000 tax deduction for someone purchasing a PZEV based Ford Focus instead. Better because of its higher FE and better because of its lower emissions. Although a tax deduction is not a credit, those that can afford a $50K automobile are more then likely picking up a nice $650 + net return vs. a smaller amount for those residing in lower brackets picking up the HCH or stripped Prius II as an example.
___It is just starting to irk me given our absolutely ridiculous budget deficits is all.
___Good Luck
___Wayne R. Gerdes
___Waynegerdes@earthlink.net
___I am getting really tired of this tax deduction for luxury automobiles myself. It is not nearly as bad as an H2 owner receiving a larger business deduction as was the case a few years ago but a $49,185 automobile owner receiving a tax deduction for the RXh which has an EPA rating of just 31/27?
___It would be better for all if the US government allowed a $2,000 tax deduction for someone purchasing a PZEV based Ford Focus instead. Better because of its higher FE and better because of its lower emissions. Although a tax deduction is not a credit, those that can afford a $50K automobile are more then likely picking up a nice $650 + net return vs. a smaller amount for those residing in lower brackets picking up the HCH or stripped Prius II as an example.
___It is just starting to irk me given our absolutely ridiculous budget deficits is all.
___Good Luck
___Wayne R. Gerdes
___Waynegerdes@earthlink.net
#3
05-07-2005, 09:32 AM
Re: Lexus RX 400h Luxury Hybrid Vehicle Is Eligible for up to $2,000 Tax Deduction
I think it's important to realize the reasons why the government is doing this. Do you really think the government cares about emissions right now? Besides Bush's occasional remark that something needs to be done about it, nothing is really done. The endorsement of hybrid vehicles in any form means they're more likely to succeed and future oil dependence is more likely to drop.
#4
05-07-2005, 11:49 AM
Re: Lexus RX 400h Luxury Hybrid Vehicle Is Eligible for up to $2,000 Tax Deduction
Hi Jason:
___Given your youth, you really do not have to trouble yourself with such things yet but you will be paying for our many digressions in a few short years from now. When you begin your life long career making 30, 40, 50, 60 + K a year to start (hopefully) and do not yet earn enough to purchase a decent home let alone a loaded up Prius II or new top of the line compact, think about that $600 benefit going to someone who probably makes 150K + year or more for an SULEV based luxury - compact SUV with a 31/27 EPA rating. You will not receive a dime of this benefit yourself because all you will be able to afford is a non-hybrid Corolla, Civic, or Focus with higher FE (most cases) and lower emissions in (some cases - PZEV based Focus as an example) on your initial salary probably. You will pay for that $600 freebie to the already wealthy Lux SUV owner one way or the other and this is where the train runs off the rails in my book. That $600 would be better spent giving $’s to those purchasing a PZEV based Ford Focus in terms of money flow here in the states, lowering our trade deficit because of our insatiable oil appetite, and lowering emissions. Hybrids do not need an incentive to move them off the show room floor in any way shape or form. Given today’s crushing government deficits; the free handout to the wealthier amongst us is a sad testament as to where the US’ future is truly headed.
___Good Luck
___Wayne R. Gerdes
___Waynegerdes@earthlink.net
___Given your youth, you really do not have to trouble yourself with such things yet but you will be paying for our many digressions in a few short years from now. When you begin your life long career making 30, 40, 50, 60 + K a year to start (hopefully) and do not yet earn enough to purchase a decent home let alone a loaded up Prius II or new top of the line compact, think about that $600 benefit going to someone who probably makes 150K + year or more for an SULEV based luxury - compact SUV with a 31/27 EPA rating. You will not receive a dime of this benefit yourself because all you will be able to afford is a non-hybrid Corolla, Civic, or Focus with higher FE (most cases) and lower emissions in (some cases - PZEV based Focus as an example) on your initial salary probably. You will pay for that $600 freebie to the already wealthy Lux SUV owner one way or the other and this is where the train runs off the rails in my book. That $600 would be better spent giving $’s to those purchasing a PZEV based Ford Focus in terms of money flow here in the states, lowering our trade deficit because of our insatiable oil appetite, and lowering emissions. Hybrids do not need an incentive to move them off the show room floor in any way shape or form. Given today’s crushing government deficits; the free handout to the wealthier amongst us is a sad testament as to where the US’ future is truly headed.
___Good Luck
___Wayne R. Gerdes
___Waynegerdes@earthlink.net
#5
05-07-2005, 12:37 PM
Re: Lexus RX 400h Luxury Hybrid Vehicle Is Eligible for up to $2,000 Tax Deduction
Oh, I agree with you. I've already stated here that I'm not in favor of the government incentives. I'm simply saying there's a reason why they're doing what they're doing, whether I agree with it or not. I do believe that hybrids will succeed even without government intervention.
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