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Get Money Back With Vehicle Tax Deduction



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By : Michael Williams    99 or more times read
Submitted 2006-09-16 19:57:51
If you decide to be environmentally conscience and buy a car with a gasoline engine and electric motor you should be able to take advantage of the vehicle tax deduction. You can also take advantage of the tax reduction if you have bought a car that runs purely on electricity. The first kind of car can get you a one-time tax deduction with a limit of $2,000, while the other can get you one with a limit of $4,000.

There are a few requirements to qualifying for a vehicle tax deduction though. One of these requirements is making sure your car runs on certain types of fuels. These fuels include natural gas, LNG, LPG, hydrogen or one that is at least 85% alcohol. In qualifying for a deduction you must also realize you cannot benefit the same as an electric car when you are using a hybrid to qualify.

In case your car happens to run on two types of fuel, you can still take advantage of the deduction. The way you can do this is by using whatever the cost is to convert your car into a clean-fuel car as your deduction. This cost is only allowed up to certain stated limits.

Of course there are a few other requirements when it comes to the deduction and taking advantage of it. One of these is making sure you bought your car brand new, not secondhand as well as making sure that it's primary use are within the United States. Also you must make sure the vehicle has at least four wheels and is for personal use only. Most important is if any of these requirements change within three years, any amount you may have saved with the tax deduction must be returned.

As far as donating and receiving a vehicle tax deduction there are certain requirements involved with this matter. The estimated value that you make on the car must be exactly what the current market value is and not a cent more. Your deduction in this case also depends on how the charity decides to use the car. The charity has to also be a recognized charity by the tax agencies. Also in cases where the charity sells it for a lesser price then the stated value, you will get the lesser amount on your deduction.

As you can see there are many advantages to be environmentally conscience and charitable. Both of these qualities can help you save money through a vehicle tax donation, and at the same time can help more than just you.
Author Resource:- Check out http://www.easy-tax-deductions.com/ for more articles on home improvement tax deduction and llc tax deductions.
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