# $900 Tax Credit



## Neutrinolad (Jun 23, 2009)

I just did my 2009 taxes...and the $900 tax credit for purchasing a 335d in 2009 was most welcome. I almost feel guilty about getting money back for driving such an amazing car...almost. :thumbup:


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## Dennis328i (Apr 5, 2007)

Did you take the deduction for the sales tax you paid as well? That was part of the 09 Stimulus Package if you purchased a new vehicle in 2009. If I remember right you could deduct the full amount paid if the purchase price was under $49K and then it was prorated after that.


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## Neutrinolad (Jun 23, 2009)

Dennis328i said:


> Did you take the deduction for the sales tax you paid as well? That was part of the 09 Stimulus Package if you purchased a new vehicle in 2009. If I remember right you could deduct the full amount paid if the purchase price was under $49K and then it was prorated after that.


Yep.


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## Flyingman (Sep 13, 2009)

Neutrinolad said:


> Yep.


Yep, me too, I'm feeling real bad about it!:thumbup:


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## autoJeff (Oct 1, 2009)

Flyingman said:


> Yep, me too, I'm feeling real bad about it!:thumbup:


Not me. For once, I actually enjoyed doing (at least this part of) my taxes. Smiled, even.


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## DC335i (Nov 2, 2006)

I didn't feel bad at all taking the sales tax deduction and clean fuel credit - I know I'll be returning the money to Uncle Sam very soon once tax rates start going up to cover all of our gov't spending programs.


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## railroader (Apr 12, 2010)

I know you guys aren't necessarily tax advisors, but what's your take on my situation:

Bought a 2008, (but new) 328i in 3/09, for which I took the CA state sales tax deduction- Tax Year 2009.
Traded that 328i for a 2010 335d, in *3/10.* Is there some way I can work the $900 eco-credit in?
Even though the deals were "connected" and I wound up with a diesel- the transfer date will probably unqualify
me. But with this Administration- it's probably a certainty that there will be lots of eco credits next year too,
as well as most of our taxes going up. I'm a retiree on pension- they can't take too much of that pittance away!

Or is my best bet to hold off and hope to get an eco credit for the 335d next year- Tax Year 2010? I did OK
on my deal though-- got the $2500 "spring sales" credit and the $4500 335d credit, plus an OK value on my 
'08 gasoline powered 328...thanks in advance for any comments.


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## Stugots (Jan 1, 2010)

You can try it this year...I'm actually not seeing a reason why you wouldn't be able to claim it. The tax credit is different than the sales tax deduction, so they're independent of each other.

I'd give it a run.


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## railroader (Apr 12, 2010)

Stugots said:


> You can try it this year...I'm actually not seeing a reason why you wouldn't be able to claim it. The tax credit is different than the sales tax deduction, so they're independent of each other.
> 
> I'd give it a run.


I see my tax lady tomorrow evening, Stu-- I'm gonna take my PO in and have her enter the car for the Credit. If they audit me, I can show them a brand new diesel BMW, so how could they deny me that little $900 credit? By the way- I dig your blacked-out tail lite treatment in your photo post!:thumbup: How did you black out the "335d logo?" With a small paint brush, or actually replace the metal numbers?


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## Penguin (Aug 31, 2003)

railroader said:


> the transfer date will probably unqualify
> me.


The IRS Tax Form require you to provide a date of purchase and a date put into service, so it would be rather difficult to claim it on your 2009 tax form.

I wish you luck, but I doubt your tax preparer will be willing to submit a date other than the date for which you have a bill of sale.

But the good news is that you will probably be able to get it for the 2010 tax year:

-------------------------------------------------------------------------*
"Can I Purchase an Eligible Car in 2010 and Claim a Similar Credit on My 2010 Taxes?*

Not in all cases. The Energy Policy Act imposed a limit of 60,000 eligible vehicles per automaker, beginning Jan. 1, 2006. After an automaker hits the mark, the IRS phases out the credits in 50 percent, 25 percent and zero percent steps over the course of a year. Toyota and Honda have already passed the mark, so you won't be able to claim any credit on a Toyota, Lexus or Honda hybrid purchased in 2010. Other automakers will follow when they reach the quota. Ford's credit, currently at 25 percent of its original amount, will no longer be available on hybrids purchased after March 31, 2010.

Under the current legislation, the 60,000 quota doesn't renew itself."
---------------------------------------------------------

I doubt BMW will hit the cumulative 60,000 Diesel quota in 2010.

http://www.cars.com/go/advice/Story.jsp?section=buy&subject=tax&story=taxCredit#1

"While the credits last through 2010, some automakers will exhaust their shares well before then."

http://www.aceee.org/transportation/hybtaxcred.htm


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## railroader (Apr 12, 2010)

Penguin said:


> The IRS Tax Form require you to provide a date of purchase and a date put into service, so it would be rather difficult to claim it on your 2009 tax form.
> 
> I wish you luck, but I doubt your tax preparer will be willing to submit a date other than the date for which you have a bill of sale.
> 
> ...


Thanks Penguin..right, she (the tax prepare) is incredibly strict and sticks to the rules. Still, she is awfully resourceful and if there is _any_ way to get it, she'll figure out how. Even if it means rolling the deduction over to the 2010 tax year. Like your source said-- maybe the 60,000 figure won't be quite exhausted by the time I can claim it. I'm still happy with my deal-- got the $4,500 and the $2,500 write-downs at time of purchase. Most importantly-- *I got the right car!* :roundel:


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## Stugots (Jan 1, 2010)

railroader said:


> By the way- I dig your blacked-out tail lite treatment in your photo post!:thumbup: How did you black out the "335d logo?" With a small paint brush, or actually replace the metal numbers?


I appreciate the kind words. I wanted them to match the front grilles, and provide a small contrast to the Shadowline trim. Also, since I knew I was going to tint the rear @ 5% and I was going to smoke the tails, it all came together as a package.

I actually replaced the chrome ones with the ones that on their now. It was pretty painless...took maybe 20 minutes to do, and a little pre-prep goes a long way when replacing them (measurement, leveling, goo remover, etc).

You can find them here:

http://www.jlevistreetwerks.com/3-S...dow-Vehicle-Emblems-for-BMW/product_info.html



Penguin said:


> The IRS Tax Form require you to provide a date of purchase and a date put into service, so it would be rather difficult to claim it on your 2009 tax form.
> 
> I wish you luck, but I doubt your tax preparer will be willing to submit a date other than the date for which you have a bill of sale.
> [/SIZE][/FONT]


The first time homebuyer's tax credit (the $8k) was able to be claimed on people's 2008 taxes, even if they bought their house in 2009, so there's a distinct possibility that this tax credit works the same way (which is what I was basing my suggestion off of).


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## Penguin (Aug 31, 2003)

Stugots said:


> there's a distinct possibility that this tax credit works the same way


No, there is not. The vehicle must be placed into service during the taxpayers tax year, at least according to the IRS.


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## Stugots (Jan 1, 2010)

Penguin said:


> No, there is not. The vehicle must be placed into service during the taxpayers tax year, at least according to the IRS.


railroader, let your tax lady tell you.

Armchair tax analysts can only speculate.


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## Penguin (Aug 31, 2003)

Stugots said:


> railroader, let your tax lady tell you.
> 
> Armchair tax analysts can only speculate.


I am not sure what your problem is, but the IRS regulations are quite clear.

I have just finished my taxes, including Form 8910, which got me the $1,800 alternative fuel tax credit for my 35d, and am far from an "armchair tax analyst."

The exact quote from the IRS instructions for Form 8910 is:

" In addition to certification, 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;
 You placed the vehicle in service during your tax year;
 The original use of the vehicle began with you;
 You acquired the vehicle for use or to lease to others, and not for resale; and
 You use the vehicle primarily in the United States."
http://www.irs.gov/instructions/i8910/ch01.html

I do not consider that to be "speculation."

If you have an issue with that, I suggest you contact the IRS rather than reply to me.


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## TridentFrog (Apr 8, 2010)

:wow::jawdrop::lmao:


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## railroader (Apr 12, 2010)

Pen, Stu, TF-- guys, I'm sorry to have caused some consternation here-- I think everything is going to be OK, no matter how it works out! I see Tax Lady today at 4 PM. I'll report back how she decides to handle it. My case is a little odd, in that it involves both a 2009 and a 2010 new BMW purchase, and a trade-across-the-year-line. I know I'm parsing and splitting hairs-
_It all depends on what your meaning of *is, is.*_ :rofl:

Penguin, maybe due to the fact that the money I paid for the 328i, in 2009 was a big part of the purchase price of the 335d, could be the bridge we're looking for. If not- no big deal; I will just claim the eco-credit next year (if I'm still kicking!) on my 2010 taxes.

She will not allow anything that the IRS would not allow! So all's well in tax-land.:grouphug:

And in this thread! Later, guys...

Bob the railroader


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## Penguin (Aug 31, 2003)

railroader said:


> Penguin, maybe due to the fact that the money I paid for the 328i, in 2009 was a big part of the purchase price of the 335d, could be the bridge we're looking for. If not- no big deal; I will just claim the eco-credit next year (if I'm still kicking!) on my 2010 taxes.


Good luck! :thumbup:


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## Tuce (Nov 24, 2009)

railroader said:


> I did OK
> on my deal though-- got the $2500 "spring sales" credit and the $4500 335d credit, plus an OK value on my
> '08 gasoline powered 328...thanks in advance for any comments.


They gave you both the $2500 Spring credit plus the $4500?


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## Stugots (Jan 1, 2010)

railroader said:


> Pen, Stu, TF-- guys, I'm sorry to have caused some consternation here


No issues here, railroader.

My point was, that unless the people replying here are CPAs, have Accounting degrees, work for the IRS, etc, your best bet is to let the tax lady give you your answer. The rest of us *are* armchair analysts, no matter how vehemently they deny it.

News flash, Penguin. You're not the only one that files taxes, and you're not the only one that got a tax credit. Maybe you should take that humongous chip off your shoulder, because it's becoming an annoyance.


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## Penguin (Aug 31, 2003)

Stugots said:


> Maybe you should take that humongous chip off your shoulder, because it's becoming an annoyance.


Maybe you should quit with the ad hominem stuff, as it is quite an annoyance.


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## fonger (Jan 5, 2005)

Tuce said:


> They gave you both the $2500 Spring credit plus the $4500?


Same question here...did they give you those credits off of MSRP or off of negotiated price? If it's off of negotiated price then that's a great deal.


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## railroader (Apr 12, 2010)

Hello guys-- all's well and here's what happened yesterday at my final tax appointment. She entered in all the correct figures; ie., purchase date, car model/make and the H and R Block software recognized the eco-credit for the car, but made a note to roll it to the 2010 tax year, so Penguin's correct. It's funny, we did a "test entry" and put in "12/31/2009" as the Purchase Date, and the software denied the credit! So, it's kind of a murky thing. I do feel, as does my Tax Lady that we will absolutely get the Credit for the next 1040 I file.

Tuce, I looked over my PO to see if I could find the answer to your question-- looks like they pro-rated the Spring Discount to $2000, instead of $2500. Could be the higher amount only works for the big Bimmers, like the 7's? And yes, I did get the full $4500 which comes from corporate BMW, right? I _could not, or would not have done the deal without this $6500 factored in._ Also, I had walked on them when I thought the trade value of my 328 was too low. That car was very clean, late model, low miles. They bumped up that number by a couple of thousand- and voila! the 335d came to be. No buyer's remorse or regrets. Yeah, the depreciation pill was pretty hard to swallow, but I justified it by telling myself-- "you now have the car you _really_ want..."


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## EYE4SPEED (Apr 19, 2010)

railroader said:


> I know you guys aren't necessarily tax advisors, but what's your take on my situation:
> 
> Bought a 2008, (but new) 328i in 3/09, for which I took the CA state sales tax deduction- Tax Year 2009.
> Traded that 328i for a 2010 335d, in *3/10.* Is there some way I can work the $900 eco-credit in?
> ...


So you were able to get both the 2000 and 4500 credit? Do you know how much over invoice you paid? I'm about to buy an '11 tomorrow, but only the 4500 credit is available.


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## railroader (Apr 12, 2010)

I probably had what might be considered an "OK" deal. This Center has a waiting list for any 335d- stripped to loaded. So they tell me...probably more dealer shenanigans. They beat me, I'm sure- because I had to eat the depreciation on my '08 trade...

So my car MSRP'd over 55K, since it has most of the bells 'n whistles, except PDC. From that they subtracted $6500, got the car down into the 40s, then threw in the $200 fitted car cover and all-weather floor mats. (Plus of course, the credit for my 328i. )They probably did not bend much on the car, since there were at least 2 other guys who wanted it, with money in hand. At any rate- I plan to keep it a long time and it will be my primary car for many, many (hopefully happy!) years to come! Now on my 328i-- that car was heavily discounted since it was a year old and I got it for just a few hundred over invoice. This is just not possible with the sought-after 335d's in my part of the country-- supply and demand rule still in effect. I had them to the point of they were "showing me the door;" what more could I do?


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