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Hybrid Car IRS Tax Deduction (Clean Fuel Vehicle Deduction) May 2005The original purchaser of a qualifying hybrid gas-electric car may deduct $2,000 for the year the vehicle is first used, if that year is before 2006. In 2006, the deduction is scheduled to drop to $500.These vehicles qualify for the clean-fuel vehicle deduction: * Lexus RX 400h Model Year 2006 * Ford Escape Hybrid Model Year 2005 * Toyota Prius Model Years 2001 through 2005 * Honda Insight Model Years 2000 through 2005 * Honda Civic Hybrid Model Years 2003 and 2005 * Honda Accord Hybrid Model Year 2005 Individuals must use Form 1040, not one of the shorter forms, to claim this deduction. They should put "Clean-Fuel" and the deduction amount on the dotted line to the left of line 35, including this amount in that line's total adjustments to income. (They would have used line 33 on the 2003 Form 1040; line 34 on the 2002 form; line 32 the previous two years.) Qualifying individuals who did not claim the deduction when they filed may claim it on an amended return (Form 1040X). Generally, taxpayers may amend returns up to three years from the original return's due date. # 2006 Lexus RX 400h # 2005 Ford Escape Hybrid # 2005 Toyota Prius # 2004 Toyota Prius # 2004 Honda Civic Hybrid, 2003 and 2004 Honda Insight # 2001, 2002 and 2003 Toyota Prius (PDF 86K) # 2000, 2001 and 2002 Honda Insight; 2003 Honda Civic Hybrid (PDF 111K) SOURCE: IRS | ||
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