05 FEH to 06 FEH for $0.00 :D

Discussion in 'Ford Hybrids' started by xcel, May 21, 2006.

  1. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi All:

    ___A crew bud just informed me that his wife traded up from their 05 FWD FEH to an 06 w/ Leather for $0.00 after the Fed Tax Credit is received. They purchased there 05 as a demo so did not receive the 05 deduction but the 06 Credit is already money in the bank so to speak. Nice upgrade for free imho ;)

    ___Good Luck

    ___Wayne
     
  2. tbaleno

    tbaleno Well-Known Member

    I'm worried now about the credit because I suspect a lot of people will have to pay the alternative minimum tax and not even get it.

    There are going to be a lot of shocked faces this year.
     
  3. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi Tom:

    ___The AMT is hanging over many in our country today and it’s not just the Hybrid credit that will get smashed once you bump through that ceiling :( At least those that do or have been hit with the AMT have credit build which allows recovery of some of the AMT paid when or if they drop below the AMT minimums in later years from my understanding.

    ___Although I did not speak with them about their tax situation (who would?), I believe he is in a better situation then I in regards to the AMT so the full hybrid credit should be available to him and his wife come next April 15 …

    ___The total deal as it was told to me later was they paid $23K for the 05 demo w/ ~ 7K miles late 05, upgraded to an 06 w/ leather for ~ $3K - the $2,650 credit. No one will see that in a non-hybrid trade-in … EVER ;)

    ___Good Luck

    ___Wayne
     
  4. Sledge

    Sledge I like owls with captions

    No AMT here. I'll be getting the full credit :)
     
  5. WaltPA

    WaltPA Member

    Does the credit itself, push people into the AMT?

    I know that if already have to pay the AMT, then the hybrid credit is lost. I am just wondering if you wouldn't be paying the AMT, that the credit itself could be the cause?
     
  6. Hamilton

    Hamilton New Member

    Actually, since they changed it from a deduction into a credit, I think it won't have any affect on the AMT calculation, as the credits are added in after figuring tax. So, if you owe AMT, I believe that you will still get a credit off of it -- having the credit itself won't change if you owe the AMT.

    That's just a guess based on last year's tax forms, and my (very) limited knowledge of tax law, so certainly don't take this as gospel on how the fed works!
     

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