Finance Tax Time

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.

Share This

Filed under: Tax Infomation by admin
No Comments »

Are you in debt? Is the Internal Revenue Service breathing down your neck and threatening your livelihood? Do not be overwhelmed by tax debt as there are ways for you to solve your tax debt problems and keep the tax collector far away. Read on for some helpful advice.

A Little Bit of Equity. If you own your home, you could have a significant amount of equity in it, especially if you have lived in it for more than five years. Through your bank or similar lending institution you can apply for an equity line of credit or equity loan. Just with this amount of borrowed money, you may be able to obtain enough funds to cover your tax debt and penalties. Current rates are still low - shop the internet for the plan that is right for you.

Sell Some Valuables. Your antique desk or chair, stamp collection, jewelry, or even an extra car may have considerable cash value to it. Turn what you own into cash; get on eBay to post your item[s] and to obtain multiple bids on what you are attempting to sell.

Friends and Family Plan. Swallow your pride and ask trusted family members and friends for help. To keep everyone happy, only accept money if a contract outlining explicit repayments terms is used. Check the internet for sample forms.

Get in Touch with the I.R.S. Talk about making a deal with the devil! Seriously, if you owe the Internal Revenue Service money and you cannot pay them back, contact them directly to arrange a repayment plan that works for you. No, they won’t forgive your tax debt, but they can spread out repayment over an acceptable timeframe. Just remember this: any unpaid balance will incur interest charges and further late payments by you will likely involve additional penalties. Read all the “legalese” before signing anything!

Finding tax debt help is the first step in tackling your problem. Ignoring the problem won’t make it go away and may worsen an already bad situation.

Once you have a plan in place, contact your county’s consumer affairs division for free debt counseling. Chances are your tax debt problem is only the tip of the iceberg and further help will be necessary to educated you on how to avoid future mistakes.

Copyright 2006 - For additional information regarding Matt Keegan, The Article Writer, please visit his blog for wit, quips, and freelance writing tips.

Share This

Filed under: Tax Infomation by admin
No Comments »