- quote -

With such a credit that you mention, then you certainly have
the rights of it.

ChEAr$,
Harlan

p.s. is it too early to ask how it is in North Carolina
just about now?

Moderator: I will be there this Sunday. It is NOT moving
fast enough for me.

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Harlan Lunsford <11icupfl5l3h77a[at]corp.supernews.com> wrote:
- quote -


Section 12 of Pub 535 notes:
You can take the electric vehicle credit or the deduction for
clean-fuel vehicle property regardless of whether you use the
vehicle in a trade or business. However, you can take a
deduction for clean-fuel vehicle refueling property only if
you use the property in your trade or business.

My take is that he gets a $435 deduction for upgrading his
personal vehicle and zilch on the property because he is not
using it as business property.

Now if he had purchased an electric vehicle, he would have
gotten a 10% tax credit but only to the end of 2005.

Dick

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Rich Carreiro <rlcarr[at]animato.arlington.ma.us> wrote:
- quote -

It appears to me that a license to run a fuel alcohol still is
a no-fee application process. I am certain that those friendly
folks at BATF will pay you periodic visits and go over your
records as though they were Grand Inquisitioners.

Dick

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Dick Adams wrote:

- quote -

Zero in the case of an individual. Figure arrived at in
that I don't remember any possible deduction or credit
anywhere. Maybe someone else will.

$2,335 depreciated over 7 years and 3200$ over 27.5 years in
the case of a business organization, or for an individual
using said items in his schedule c business.

One addition possible deduction, though, and that is a
business casualty loss (not for individual btw) when the
vehicle's engine is destroyed from using ethanol because the
engine wasn't built thataway. (I remember reading that only
recently when debating whether or not to purchase premium
fuel for my car since most stations in Tampa were out of
regular. I actually read the car manual.)

ChEAr$,
Harlan Lunsford, EA n LA

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Dick Adams <rdadams[at]smart.net> writes:

- quote -

I thought it was unequivocally illegal for Americans to
distill ethanol (even if it's not intended to be drunk) and
that stills (even if not used to distill ethanol) have to be
registered with BATF

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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Assuming it's not a still to produce booze or products for
other than personal consumption, and that he/she is not in
business, there would be no deduction for the personal
expenses. Depending on usage, there may be a credit
available:

http://www.irs.gov/publications/p378/ch06.html

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One of my major problems in life is that people think I know
tax practice and come to me with their schemes. Usually I
can say "Please do not mention my name at your trial." But
here is one of which I plead total ignorance

Individual spent $435 for the installation of a computer
chip so that his car would run on Ethanol. He purchased a
fuel alcohol still for $1,900 and built a building to house
this still for $ $3,200.

Not just what are his deductions as an individual, but how
did you arrive at these figures. And what information am
I missing.

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