Tax credit for buying 3500 CTD

[SBreaux]

Just a quick question if someone can help. What are the tax credits if any that a person is entitled to when they buy a 2007 Dodge diesel PU?



When I file my 2007 tax return, what can I claim as a tax credit and how much for the new fuel standard?



Thanks,

 

[DieselLady]

The only tax credit I know about is if you bought it for work!!! Is there some other credit we should all know about?

 

[Drdorian]

Here is something as of April of this year
http://www.dieselforum.org/fileadmin/templates/Resources/LDTax.pdf

According to this it covers vehicle up to 8500 GVWR, I just looked at Dodge's website and the base rating for a 2500 is 8800 lbs, and I think that's with the Hemi

 

[Loren]

After quite a bit of searching on the IRS web site, I don't see anything that makes me think that we will be eligible for a tax credit. Here are some web pages that may be worth your reading, if you can wade through the legalese.



Loren



Qualified Alternative Fuel Motor Vehicles (QAFMV) and Heavy Hybrid Vehicles



Summary of the Credit for Qualified Hybrid Vehicles



http://www.irs.gov/pub/irs-drop/n-06-09.pdf



Loren

 

[CumminSense]

I (or my accountant) claimed my truck for business use, but that's the only "credit" I know of. I think the law changes about every year on this, but when I first deducted mine a couple years ago, I think the vehicle had to be over 6000# and used at least 50% for business. In addition, there was an accelerated deduction (I think it was/is section 179) that could allow you to deduct it all in one or two years.



My understanding was that the deduction was originally passed into law a couple decades ago, to allow / encourage farmers and small tradespeople who used a heavier truck in their business to get a new truck. Then when the monster SUVs passed 6000#, all the yuppie lawyers and the likes who drive those things and had their own firms began using the deduction -- legally, but outside the spirit of the law. The joke (not so funny) was that they would count their miles to Starbucks for lattes as "business use".

 

[MMeier]

Just a quick question if someone can help. What are the tax credits if any that a person is entitled to when they buy a 2007 Dodge diesel PU?



When I file my 2007 tax return, what can I claim as a tax credit and how much for the new fuel standard?



Thanks,

IIRC, there was a $198 dollar for dollar credit way back when. Believe it ended at the end of '96 or so, missed out by a few months when I bought the '97 new. :{

 

[Jeepstang]

Tax write off

Before I purchased my truck I spoke to my accountant. I own a business and put the truck in the business name. He said I can write off the entire truck over 5 years which in my case is 10k each year

no one will deny a 3500 DRW for business use

 

[klenger]

You guys are confusing tax credits and tax deductions. As far as I know, there are no tax credits on a CTD. Tax deductions depend on your business use of the truck.

 

[Loren]

You guys are confusing tax credits and tax deductions. As far as I know, there are no tax credits on a CTD. Tax deductions depend on your business use of the truck.

That's right. Most of the comments here are about a tax DEDUCTION for the business use of your truck. That's an entirely different animal from a tax CREDIT that is given by the government to encourage the purchase of clean-burning, fuel efficient vehicles. As I said, I don't see where our trucks qualify for the tax CREDIT. Lots of our trucks are used for business and those expenses, including the depreciation on the truck, can be DEDUCTED.



The last tax credit I heard of that we could use was the credit for alternative fuel vehicles. I saved about $200 on my 1995 taxes when I purchased the 1995 truck. That tax credit was repealed soon after that.



Loren

 

[jelag]

CumminSense has it right for business owners... . its a more rapid and increased depreciation schedule... it includes GVW vehicles... . above a certain point... Navigators, duallys, the big Cadillac what ever it is... . The IRS is trying to close the gap on the SUV's it was intended for commercial users and trucks... . If we have a CPA he might know the tax laws better than I.....