Various Toyota Hybrids Get Tax Credit Certification From Irs

Various Toyota Hybrids Get Tax Credit Certification From IRS
Starting in​ 2018,​ individuals buying hybrid cars will get a​ tax credit instead of​ a​ tax deduction .​
The IRS has just started to​ kick out the​ exact amounts you​ can claim for your new hybrid .​
Various Toyota Hybrids Get Tax Credit Certification From IRS
Under the​ Energy Policy Act of​ 2018,​ the​ tax benefits of​ owning a​ hybrid vehicle underwent significant changes .​
Whereas you​ could previously claim a​ tax deduction,​ the​ new law converted the​ deduction into a​ tax credit .​
Tax credits are FAR more valuable than deductions,​ because they reduce the​ amount of​ tax you​ owe on​ a​ dollar for dollar basis .​
Tax Deductions,​ on​ the​ other hand,​ merely reduce your adjusted gross income prior to​ determining the​ amount of​ tax you​ owe pursuant to​ the​ tax tables .​
In laymen’s terms,​ this conversion is​ a​ very good thing .​
Not every hybrid car qualifies for a​ tax credit .​
The Internal Revenue Service must first evaluate it​ and then issue guidance on​ which cars qualify and the​ size of​ the​ credit you​ can claim for each .​
The maximum the​ IRS can designate per car is​ $3,​400 .​
Here are the​ numbers it​ recently kicked out for various Toyota hybrid models .​
2018 Toyota Prius: $3150
2018 Toyota Prius: $3150
2018 Toyota Highlander 4WD Hybrid: $2600
2018 Toyota Highlander 2WD Hybrid: $2600
2018 Lexus RX400h 2WD: $2200
2018 Lexus RX400h 4WD: $2200
If you​ purchased your hybrid car prior to​ 2018,​ you​ are restricted to​ claiming a​ tax deduction in​ the​ amount previously designated by the​ IRS,​ usually $2,​000 .​
If you​ waited until 2018,​ you​ can claim the​ above amounts with a​ few hitches .​
First,​ the​ amount only applies to​ the​ first 60,​000 cars sold for each model .​
If you​ purchase a​ hybrid in​ the​ 60,​0001 to​ 120,​000 sales range,​ you​ can claim only half of​ the​ tax credit .​
Sales 120,​001 through 180,​000 can claim on​ a​ quarter of​ the​ amount designated above .​
Exactly how you​ are supposed to​ know the​ sales figures is​ a​ bit murky,​ but Toyota will undoubtedly take steps to​ make it​ clear.
Hybrid vehicles make sense from an​ environmental aspect .​
Throw in​ significant savings on​ gas costs and a​ large tax credit,​ and they should fly off the​ lots.
Various Toyota Hybrids Get Tax Credit Certification From Irs Various Toyota Hybrids Get Tax Credit Certification From Irs Reviewed by Henda Yesti on July 06, 2018 Rating: 5

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