Toyota Prius owners can take clean-fuel deduction.The IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. approved the 2005 Toyota Prius The Toyota Prius is a hybrid electric vehicle developed and manufactured by the Toyota Motor Corporation, and one of the first such vehicles to be mass-produced and marketed. The Prius first went on sale in Japan in 1997, and worldwide in 2001. as eligible for the clean-burning fuel deduction. Taxpayers who purchase this vehicle new may claim a tax deduction Tax deduction An expense that a taxpayer is allowed to deduct from taxable income. tax deduction See deduction. of $2,000 on form 1040 under the Working Families Tax Relief Act of 2004 (www.irs.gov/newsroom/article/0,,id=130146,00.html). The one-time deduction must be taken by the original owner in the year the vehicle first is used. Individuals can take this benefit as an adjustment to income and do not have to itemize To individually state each item or article. Frequently used in tax accounting, an itemized account or claim separately lists amounts that add up to the final sum of the total account on claim. deductions to claim it. |
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