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prius worth getting? - Page 3

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Posted by Michelle Steiner on November 5, 2004, 6:43 pm
 Chewy2426@aol.com (Aaron) wrote:

The current Prius just started its 2nd model year, with major changes
improvements in those areas.  I doubt that there will be any major
changes before the 2006 models.

The bottom line is that if you don't need a new car now and don't have a
strong want for one now, wait until you do.

Stop Mad Cowboy Disease:  Impeach the son of a Bush.

Posted by John J. DeGrazia on November 21, 2004, 4:11 am
I was told by a dealer recently that the $000 tax exemption is no longer
applicable. That may just be in CA. But what does "the Group" say?

Life is too short to post at the bottom!
John (remove .remove to reply) DeGrazia

Posted by Michelle Steiner on November 21, 2004, 6:25 am

It's a federal tax credit (not an exemption), and is applicable
throughout the country.

In 2006, it will be reduced to $00, and in 2007, it will be
eliminated--unless the law is changed again, that is.

Your dealer is just plain wrong.

Stop Mad Cowboy Disease:  Impeach the son of a Bush.

Posted by Michael Pardee on November 21, 2004, 12:50 pm
To be more accurate, it is a tax deduction - you don't get $000 back, but
you do get to deduct $000 from your taxable income. Still very worthwhile.


Posted by Michelle Steiner on November 21, 2004, 3:18 pm

Sorry, I got the terms wrong; I knew what it was, but used the wrong
term.  Actually, it's neither a credit, exemption, nor deduction; it's
an adjustment.  It is entered on line 35 of the (2003; the line number
may change for the 2004) tax return.

Credits:  Money reducing the tax itself.

Exemption:  Money reducing income, based on the number of people in the
family (who meet age and other criteria) and certain physical conditions
of the filer or filers (e.g., age and eyesight).

Deduction:  Money reducing income, based on expenditures for certain
activities (e.g., medical expenses, property tax, mortgage payments)
meeting specific criteria--or a standard amount, depending on filing
status (e.g., single, married, head of household)--whichever is greater.

Adjustment:  Money reducing income based upon expenditures for certain
listed activities, in addition to any exemptions or deductions.

The advantage of tax credits is that it reduces the tax
dollar-for-dollar by the amount you can claim.  All the rest reduce the
tax by the percentage of your tax bracket.  (E.g., a $00 deduction or
adjustment results in a $5 tax savings for someone in the 25$ tax

The advantage of adjustments is that you do not have to itemize to claim
it.  If your itemized deductions come to less than the standard
deduction, you have to take the standard deduction, but you can then
reduce your claimed income even further with any adjustments you may be
eligible for.

Stop Mad Cowboy Disease:  Impeach the son of a Bush.

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