IRS Issues Tax Credit Amounts For GM Trucks

By: Richard Chapo
Submitted: 2007-01-17 16:16:43
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

As 2006 rolls along, the IRS is in the process of issuing tax credit amounts to particular hybrid vehicles. The agency has just issued the amounts for a number of GM vehicles.

As part of the Energy Policy Act of 2005, the tax advantages of owning a hybrid vehicle have been seriously upgraded. Prior to the Act, a person that purchased such a vehicle could claim a tax deduction of up to $2,000. While this was nice, the new Act changed the deduction into a tax credit. Tax credits are far better than tax deductions because they are reduced directly from the tax you owe, not your gross income.

Through 2006, the IRS is working its way through various hybrid models and issuing the amount of tax credit that can be claimed for each. Makes include Honda, Toyota, Ford, Lexus and just about every vehicle in the class. On July 11, 2006, the IRS issued a slew of tax credit determinations for hybrid trucks made by General Motors.

If you purchase a new GM hybrid truck, you will now be able to claim a tax credit on your tax returns. The models and amount of the tax credit that can be claimed are as follows:

1. $650 dollars for 2006 GMC Sierra (4WD) hybrid pickup truck.

2. $650 dollars for 2007 GMC Sierra (4WD) hybrid pickup truck.

3. $650 dollars for 2006 Chevrolet Silverado (4WD) hybrid pickup truck.

4. $650 dollars for 2007 Chevrolet Silverado (4WD) hybrid pickup truck.

5. $250 dollars for 2006 GMC Sierra (2WD) hybrid pickup truck.

6. $250 dollars for 2007 GMC Sierra (2WD) hybrid pickup truck.

7. $250 dollars for 2006 Chevrolet Silverado (2WD) hybrid pickup truck.

8. $250 dollars for 2007 Chevrolet Silverado (2WD) hybrid pick up truck.

To claim the tax credit, you must purchase any of the above vehicles from a dealer after January 1, 2006. The vehicle must also be new, not used. As an aside, the tax credit amount will drop after the 60,000th model has been sold, so you may want to buy now if you are considering any of these vehicles.

Tax credits for purchasing a hybrid are a tremendous benefit when it comes to filing your returns. Since the tax credit amount is reduced directly from the amount you owe, it can make for some very nice refunds.

Richard A. Chapo is with BusinessTaxRecovery.com - providing information on taxes.

Article source: Expert Articles

Most Recent Articles in Taxes category

  • Texas Property Tax Appeals - By: Patrick C O Connor
    Texas Property Tax Appeals Steps to Protesting and Reducing Your Property Value Annually
  • Taxes - By: Patrick C O Connor
    Taxes are a levy imposed upon people or legal entities by a governmental entity. There are many forms of taxes including income taxes, property taxes, capital gains taxes, consumption taxes, excise taxes, retirement taxes, sales taxes, tariffs, toll taxes and transfer taxes. This article focuses on reducing income taxes for real estate owners.
  • Gift Tax Valuations - By: Patrick C O Connor
    Gift tax valuations are prepared for many reasons. Gift tax includes market value of gifts to charity, market value of conservation easements and gifts in excess of annual limit. Well-reasoned planning of gifts can minimize gift taxes, income taxes, and estate taxes.
  • Please keep your hands out of my pockets Uncle Sam!: Business tax savings you should know about. - By: Amar Brown
    Many people are unaware that a business including a home based business can mean thousands of dollars in tax advantages per year. Thousands that you can put back into you pocket. Here are a few tips on keeping Uncle Sam Out of your pockets and keeping more of your hard earned money in.
  • Cost segregation - correctly depreciation real estate 10 - By: Patrick O'Connor
    Depreciation is an important non-cash tax deduction. By increasing tax deductions, commercial property owners affect federal income tax reduction. The increase in tax write-offs generates such a large tax cut that some wonder if it is a tax shelter or tax evasion scheme. It is not. Cost segregation is an IRS-guided process used to increase tax deductions during the tax preparation process. The IRS has provided a detailed explanation of the items that qualify for short-life depreciation and acceptable methodologies for performing a cost segregation study. Cost segregation studies performed by appraisers in compliance with the IRS's Audit Techniques Guide are unlikely to be challenged in an audit. Commercial real estate owners seeking tax advice and tax relief can benefit from reviewing the tax relief available from cost segregation.
  • Estate Taxes - By: Patrick O'Connor
    Estate txes are often referred to as the death tax. Few Americans are subject tp estate tas due to the exclusion on the first$2,000,000 of an estate (2006,2007, and 2008). Taxpayers with estates substantially in excess of this amount should consider planning to minimize estate taxe. For family businesses it is important to ensure adequate liquidity is available to pay estate taxes. For family businesses it is important to ensure adequate liquidity is available to pay estate taxes (so the business does not have to be sold to pay the taxes).
  • Tax Deferral 1031 Exchanges and Cost Segregation - By: Patrick C O Connor
    Tax deferral through 1031 exchanges, or tax-free exchanges of real estate, have become a popular method of tax deferral of capital gains taxes. Almost by definition, individuals who utilize the 1031 exchange option are reluctant to pay taxes that can legally be avoided. 1031 exchangers have asked if they can receive tax deferrals and enhance depreciation.
  • Tax deductions - A result of Cost segregation - By: Patrick C O Connor
    Tax reduction and tax deferral are the primary benefits of obtaining a cost segregation study. Income taxes are a substantial burden for most real estate investors. Tax deductions help with this burden. While some level of taxation is necessary, it is both inappropriate and imprudent to pay more than your fair share.
  • Capital Gains Tax Loopholes Shrinking - By: Carol Freyer
    Seems the new 2008 housing bill was not a savior for all of us - like a scorpion there is a little kick in the tail! However, struggling home owners can breathe easy, the kick is not directed at them, in fact, it is aimed at real estate investors.
  • Tax Loopholes of the Rich - By: Aus Mark
    There are only two types of tax payers; those that play the game and those that don't.