tax refund for 2005?

[user 62851]

I havent done this be4 for my vehicle. i did a search but still not sure where line 35 is on the tax form. Tryin to use hrblock.com for online filing and not sure where FFV comes into play on the tax refund. any info would be good to hear. thanks in advance for any that can help.

 

[Thomas Rogers]

There is a lot of controversy. By the letter of the tax code, as written (2004 codes, I am not sure about 2005), you can deduct $2000 *IF* your ST is equipped with a Flexible Fuel engine, which I would assume that the '04 of yours is.



I deducted that amount last year for my 04 ST without issue.



If you consult with a tax advisor, which I recommend, don't be surprised if they tell you different, or that they say the same. Seems even the tax advisors and the IRS can't make sense of the muddy water of this area of the code; some say one thing, others say something different, even in the same organizations.



What does the HRBlock site ask? Turbotax last year had a bunch of questions guaging eligibility, then left it to you to enter a deduction.



TJR

 

[EddieS'04]

H&R Block guy knew about the dedution, and I claimed the $2000 dollars last year(it is a one time deal)..no problem..not sure if the same offer exist now..Iam probably wrong but I thought it ended last year...

 

[TrainTrac]

You can only take it as a deduction on your return in the year that your vehicle was purchase. It's a one time thing, not an annual deduction. If you purchased an eligible vehicle by the end of 2005, you can still take the deduction. Here's more info:

 

[TrainTrac]

Personally, other than having a reduced emissions vehicle, I don't see any benefits of using E85. It costs more per gallon, MPG is worse when using, so overall fuel costs for the ST are higher. At least according to this analysis:

 

[Robert Stanton]

Sweet! Bought my '05 in August.... $2000 deduction for me! Thanks guys!

 

[TrainTrac]

Yup, I took my deduction in 2004.

 

[Thomas Rogers]

TrainTrac is right, shvdnlayd, unless you bought a left-over '04 sometime in 05, you can't claim it as you have to claim it for the year of purchase.

 

[TrainTrac]

Oh, also if I'm not mistaken, it's only applicable to new vehicle purchases, not used vehicles.

 

[Mark Smith]

Bought a new 2005 ST in May 05, I will be taking the $2000 tax deduction.

Thanks for the info. myst.com:wub:



Mark S

 

[user 62851]

gotcha, well guess i missed out on the deal back in 04 then. i got it back in june 04. but i never did the tax refund. i would almost think that u could use this refund every year as long as u still own the vehicle. or if it is a one time deal, that u could only use it once and u choose when u get to use it. just got my w2 today and was tryin to see what i could do. didnt know anything about the tax refund til about a couple months ago, but it wasnt from here.



funny thing about that e85 crap though, i dont know how it is in other areas but around here in Maryland at this pump right near my work, when gas prices shoot through the roof of 2.50 n up a gallon, e85 seems to always be .30 cents cheaper. but when gas prices went down to around 1.99, e85 shot up to 2.60. which its weird. and yes e85 cuts about 5mpg off the total. so in all it pretty much equals out.

 

[user 62851]

i just found this crap online,,



Under Working Families Relief Act of 2004 which was signed into law in October of 2004, the clean-burning fuel deduction is limited to up to $2,000 for certified vehicles first put into service in 2005 and $500 for vehicles placed in service in 2006. No deduction will be allowed after 2006.

This one-time deduction must be taken in the year the vehicle is originally used. The taxpayer must be the original owner. Individuals do not have to itemize deductions on their tax return to claim this deduction. This benefit can be taken as an adjustment to income on the Form 1040.

 

[J Smith 2]

Will have to file a 1040X(amended return) for 2004 to get the 2K

 

[Robert Stanton]

Update: Completed my taxes tonight using TurboTax online. The "Basic" package includes this deduction; it'll ask first if you bought an electric vehicle (a different deduction), then about a clean-fuel vehicle.



The web site linked to early in this thread says you should write in "Clean Fuel" and take the $2000 on line 35 of the 1040 form. When I printed mine, it shows up on line 36.... think the web site is a year out of date.

 

[Johnny O]

Anybody know if I can take that deduction since I lease mine?

 

[Thomas Rogers]

That's a good question, JohnnyO, I suspect not, since you didn't "purchase" your vehicle. Check with an advisor and the tax codes.



Take a look at this old thread, and I suggest reading Publication 535 for details:

 

[Ken Crockett]

Claimed my deduction last year on my 2004 ST. H&R Block did my taxes. They were unaware of it, but after I showed it to them, the way they read the code was that I could claim "up to $2000", but only if I could show up to that amount in additional or conversion costs in order to be able to run as a FFV.



I/we decided that since the engine was standard equipment, I would claim the full $2000 and let the IRS and Ford argue about how much the FFV engine added to the cost of the vehicle, since Ford wasn't about to give that info out to me.



But I did go ahead and buy the extra H&R Block insurance, just in case . . . :unsure:

 

[Thomas Rogers]

Given the codes, as they read, 3g Desert Rat, you did exactly and all that you could and should have done, IMHO.