Last Updated : January 14, 2009
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8882

Form 8910

Alternative Motor Vehicle Credit

PURPOSE OF THE FORM :

Use form 8910 to figure the credit for alternative motor vehicles placed in service after 2007.
The credit attributable to depreciable property (vehicles used for business or investment purposes) is treated as a general business credit. Any credit not attributable to depreciable property is treated as a personal credit.

An alternative motor vehicle is a new vehicle that Qualifies as one of the following four types of vehicles:

  • Advanced Lean Burn Technology Vehicle.
  • Qualified Hybrid Vehicle.
  • Qualified alterantive fuel vehicle.
  • Qualified fuel cell vehicle.

The following requirements must be met to qualify for the credit.

  • The vehicle was placed in service after 2007.
  • The original use of the vehicle began with the taxpayer.
  • The vehicle was acquired for use or to lease to others, and not for resale; and
  • The vehicle was primarily used in the United states.

PART - I TENTATIVE CREDIT :

Use a seperate column for each vehicle.
Unless the taxpayer elects not to claim the credit, the taxpayer must have to reduce the basis of each vehicle by the sum of the amounts entered on lines 7 and 11 for that vehicle.

Line 1:
Select from the combo box the make and model of the vehicle and year of vehicle purchased.

Line 2:
Enter on this line the date the vehicle was placed in service. Use the MM/DD/YYYY format to enter the date.

Line 3:
The program based on the data entered on line 1 and line 2 enters the maximum allowable credit allowable for the year (before reduction under the phaseout rules). The taxpayer can rely on the manufacturer's (or domestic Distributor's ) certification of the maximum credit allowable.
For more information refer the instruction PDF.

Line 4:
Enter 100% unless the vehicle is a Qualified Hybrid Vehicle OR advanced lean Burn technology manufactured by the Toyota Motor Corporation.
Enter the following percentages if the vehicle is a Toyota or Lexus Qualified Hybrid or advanced lean burn technology vehicle.

  • 100% if you purchased it before October 1. 2007.
  • 50% if you purchased it after September 30, 2007 but before April 1,2008.
  • 25% if you purcashed it after March 31,2008 but before October 1,2007.
  • 0% if you purcahsed it after September 30, 2008.

For further details, refer instructions.

Line 5:
The program multiplies line 3 (allowable credit) by the line 4 (phaseout percentage) and enters the result on this line.

PART - II CREDIT FOR BUSINESS OR INVESTMENT USE PART OF VEHICLE :

Line 6:
Enter the percentage of business / investment use.
Enter 100% if the nature oif vehicle doesnot lend itself to personal use or you are claiminf the credit as the seller of the vehicle.

If the nature of the vehicle doesnot lends itself to personal Use , determine this percentage by dividing the number of miles the vehicle is driven during the year for trade or business purposes or for the production of income by the total number of miles the vehicle is driven for all purposes.

Treat vehicles used by employees as being used 100% for business/investment purposes if the value of personal use is included in the employee's gross income , or the employees reimburse for their personal use. If you report the amount of personal use of the vehicle in your employees gross income and withold the appropiate taxes , enter the 100% for the percentage of business / investment use.

For more information refer the instructions and publication 463.

Line 7:
For each of details of vehicles entered the program multiplies line 5 (tentative credit) by the business / investment use % entered on line 6 and enters the result on this line.

Line 8:
The program adds line 7 columns 1 , 2 and 3 and enters the result on this line.

Line 9:
The amount on this line comes from schedule K-1P/S and schedule K-1ET line named Alternative Motor Vehicle Credit.

Line 10:
The program calculates the business / investment use part of credit by adding lines 8 and line 9. This amount is reported on FORM 3800.

PART - III CREDIT FOR PERSONAL USE PART OF THE VEHICLE :

Line 11:
The program subtracts line 7 from line 5 for each of the vehicle seperately and enters the result on this line.

Line 12:
The program adds the result obtianed on line 11 for each of the vehicle and enters the result on this line.

Line 13:
The amount on this line comes from FORM 1040 line 44 (tax) or FORM 1040NR line 41(tax).

Line 14a:
The amount on this line comes from FORM 1040 :
total of line 47 (child and dependent care benefits), line 48 ( credit for elderly and disabled) , line 49 (education credtis), Line 50 (residential energy credits) , line 52 (child tax credit) , line 53 ( Retirement savings contribution credit) , line 54 ( form 8396 line 13) , (form 8859 line 13) , (form 8839 line 18) .
OR from FORM 1040NR:
total of line 44 (child & dependent care benefits) , line 45 (residential energy credits) , line 47 (child tax credit) , line 48 (retirement savings contribution credit) , line 49 ( form 8396 line 13) , (form 8859 line 13) , (form 8839 line 18) .

Line 14b:
The amount on this line comes from FORM 1040 line 51 (foreign tax credit) or FORM 1040NR line 46(foreign tax credit).

Line 14c:
The amount on this line comes from Form 8834 line 20 (qualified electric vehicle credit).

Line 14d:
The program adds line 14a through line 14c and enters the result here.

Line 15:
The program subtracts line 14d from line 13 and enters the result on this line.If the result is negative then it is set as zero.

Line 16:
The amount on this line comes from FORM 6251 line 33 (tentative Minimum tax).
Although you may not owe Alternative Minimum tax , you must still foigure the tentative minimum tax to figure your allowable credit.

Line 17:
The program subtracts line 16 from line 15 and enters the result on this line.If the result is negative then it is set as zero.

Line 18:
The program enters the lower of line 12 or line 17 here and reports this amount on FORM 1040 line 55 or FORM 1040NR line 50.
If you cannot use part of the personal portion of the credit because of the tax liability limit, the unused credit is lost.
The unused personal portion of the credit cannot be carried back or forward to other tax years.

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