Discussion:Does lease of a 2007 Toyota Prius impact the Alternative Motor Vehicle Credit?
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Discussion Forum Index --> Tax Questions --> Does lease of a 2007 Toyota Prius impact the Alternative Motor Vehicle Credit?
| 13 March 2007 | |
| Have looked and looked. Nothing says otherwise, so I hope no difference. C Corp purchased one 2007 Prius, then leased another one. I want to get the credit for both.
Anyone know if leasing such a vehicle affects the credit? | |
| 13 March 2007 | |
| I believe that the IRS says that the leasing company gets the credit. | |
| 13 March 2007 | |
| Thanks Riley2. Yes, that is what I finally found too. Thanks for confirming. | |
| 3 April 2007 | |
| sorry to drag up an oldy but did anyone ever find a specific code section or reference to this question. I ask because I have a client who leased and of course the salesman told him he would get the credit but from what I read it sounds like he doesn't. | |
| 3 April 2007 | |
| A taxpayer who acquires the hybrid auto for his own use or for lease to another person is entitled to the credit. Sec. 30B(d)(3)(A)(vi).
Do you know how you can tell when a car salesman is lying? Answer: when his lips are moving. | |
| 3 April 2007 | |
| Thanks Riley2 , Also thanks for the laugh I had heard that one before but I really need it today thanks alot! | |
| 4 April 2014 | |
| My client insisted that he got the Form 8910 Credit on a leased vehicle. I researched it and my PPC 1040 Deskbook confirmed he was right. Their 1040 Deskbook Key Issue 15H states "The alternative motor vehicle credit (IRC Sec. 30B) is available for new (not used) vehicles that are either purchased or leased by the taxpayer and for both business and personal vehicles. " | |
| 4 April 2014 | |
| Sec. 30B(d)(3)(A)(vi): "...which is acquired for use or lease by the taxpayer and not for resale..."
Note it does not say "...which is acquired or leased for use | |
| 4 April 2014 | |
| Sorry, Thompson Reuters. I think I will go with the tax code and Riley2 on this one. | |
| 4 April 2014 | |
| I will just add that the instructions to form 8910 agree with Riley2 as well
"The following requirements must be met to qualify for the credit: You are the owner of the vehicle. If the vehicle is leased, only the lessor and not the lessee, is entitled to the credit;" | |
| 5 April 2014 | |
| Unless it is a capital lease? Unlikely, for a car, but possible. | |
Harry Boscoe (talk|edits) said: | 5 April 2014 |
| There used to be a set of rules created by the IRS - maybe it was for the investment credit, maybe for ACRS write-offs - that determined whether a transaction was a lease or a purchase. It was sort of a facts and circumstances test, including how much of the value of the car was to be paid off how quickly, and how small the cash buyout at the end of the payments was. Is it still around? Is it still valid? Would it apply to this credit, too? It was, in effect, the IRS's version of FASB 13. Am I geezing? | |
| 5 April 2014 | |
| Pretty much all the guidance is listed herein, in this here document:
http://www.novoco.com/energy/resource_files/irs_guidance/rulings/proc_01-28.pdf We studied this at our Book Club about 6-months ago... | |
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