End of the Year- Auto-Car tax deductions and more. The year of the Hybrid automobile was usurped by the introduction of the all-electric-hybrid, which, other than the Porsche Cayenne Hybrid, are the only alternative hybrid vehicles to achieve federal tax advantage status.

NOT all HYBRIDS get TAX CREDITS.

The Prius, Insight, and GM model truck hybrids have exhausted their credit status by virtue of the number of units sold over the past five years.

100% Electric cars and models with limited sales are still eligible.

These would be the Chevy Volt, Nissan Leaf, Tesla Coupe and Fisker Karma. The Chevy Volt has had some problems in the press lately, as the garaged vehicles started burning up after some NHTSA crashes led to batteries catching fire. The Nissan Leaf is only sold in certain states, as Nissan limits introduction to more urban-demand locales. The Fisker will barely deliver 100 vehicles to owners before the December 31st 2011, tax deadline. As for miles, the standard deduction in 2011, for those keeping a log of their travels (required by the IRS), is .51 cents this year. 51 cents per mile for business miles driven 19 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of charitable organizations A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. (direct from the IRS website for 2011) However, if gas prices continue to level-off or fall, so could the per mile allowance from the IRS for 2012. You can always use exact expense, including monthly payment (lease or buy/loan requires different calculations) instead of the straight (logged) miles.
SECTION 179
This business vehicle allowance as part of the FARM Bill, originated to encourage large scale machinery buyers to invest in their business. The 6,000lb vehicle weight rating slid many enterprising business executives into Hummer, Tahoe, and other large sport utility vehicles. Today, the Porsche Cayenne and Land Rover are the only 5 passenger vehicles that meet this qualification. You can purchase a used vehicle and still qualify for the SECTION 179. This article is not meant as tax advice or as an attempt to avoid paying taxes. Please consult your tax professional regarding your specific tax situation. ———————————— Sarah Lee Marks is MyCarlady. She has over 22+ years of experience. She writes about cars, and is a staunch consumer advocate on car related subjects. MyCarlady offers free car buying advice, and private, auto-related services to help you maintain your personal or commercial vehicles. Call Sarah Lee for more information: 702-521-7546 ————————————————— ]]>