How to Get a Land Rover Tax Credit

February 16, 2012

If you're in the US, looking for a Land Rover tax credit from the IRS, or in the UK, seeking the Land Rover with the cheapest road tax, get the facts.

Tax Preparation

Land Rover tax credits that may be available for the vehicle might be something you want to consider. Tax credits are deducted from the actual amount of tax you owe and deductions help to reduce the amount of income for which you are taxed. Here is a general guide on how to get tax credits and deductions for a Land Rover.

Save on Sales Tax with a Trade-In
One of the biggest tax reductions for a Land Rover can be had at the time you purchase your new vehicle. Although the dealership will never offer you as much for trade-in vehicle as you might receive from a private party buyer, the amount you save in state sales tax could even the score.

Any amount offered you buy the dealership for your trade-in vehicle is deducted from the original selling price of the new Land Rover. This reduces the balance owed to the dealer and also the amount of sales tax you have to pay to your state government.

Keep Your Receipts and Records
Keep all of the receipts and records for your Land Rover in a safe place. Keep receipts and records for gas, oil and other service related purchases for your Land Rover, and then use them to itemize your deductions on your income tax return. Itemizing your deductions can save you more than with a standard personal deduction. If you use your Land Rover for work related travel, for school or medical appointments, you may be able to deduct even higher amounts from your income taxes--if you keep your receipts and records. Be sure to keep them for at least five to seven years in the event you are ever audited by the IRS.

Start a Mileage Journal
In your new journal, record your vehicle's mileage before and after driving. Also, record the purpose of the trip and all locations to which you travel. Mileage can also be deducted from income taxes, so long as you can show the IRS that trips were for purposes that allow for deductions.

Keep the Your Land Rover Green
Keep your Land Rover green and smog free by making sure that it is tuned up and serviced at proper intervals. If you live in a state that requires emissions or smog testing, you know that fees associated with these tests can be very expensive. Avoid mandatory retests and additional penalties or fees by keeping your Land Rover properly tuned up. In addition to the money you save on emissions taxes, the amount of money you save in sales tax on repairs can be considerable.

Familiarize Yourself with Available Tax Credits and Deductions

Income tax credits authorized by congress vary from year to year. Although tax credits for a Land Rover may be available, all Land Rover purchases may not eligible. For instance, if you own a hybrid Land Rover, you may be eligible for tax credits for certain types of fuel efficient vehicles. Other times, you may be eligible to deduct sales tax paid to a state government up to a certain amount. Search for articles or sites that provide specific year model information for Land Rover vehicles that are eligible for tax credits.

Get More Details from the IRS
Once you find that your Land Rover qualifies for a tax credit, visit the IRS website to make absolutely sure. On the IRS site, you can search for publications or other information about tax credits available during a particular tax year. Once you have found a publication that refers to the particular tax credit you're interested in, review it thoroughly as it will usually give detailed information about what types of vehicles are eligible. The publication should tell you which types of taxpayers can apply for the credit.

Get Needed Forms
On the IRS website, there is a section where you can download any forms that may be needed to apply for the credit. When researching tax credit information, take note of any form numbers that are needed and download them from the site.

Apply the Credit or Deduction on Your Return
Follow the instructions provided in the publication and on the forms needed to apply for the tax credit for your Land Rover. All IRS forms and publications provide detailed instructions on how to calculate the amount of a credit and how to deduct it from the amount of income tax you owe.

Land Rover Models for Cheap UK Road Tax

In the United Kingdom, the government taxes vehicles with an annual vehicle tax intended to fund public projects. The Land Rover is not exempt from this kind of taxation, but some models incur more of a tax levy than others.

Land Rover Freelander
This "compact" Land Rover runs on a relatively small 2.2L engine and falls into road tax band I or J, depending on the model. This is the lowest road tax category for any Land Rover vehicle, but still incurs a showroom and annual tax totaling about £500.

Land Rover Range Rover Sport Base Model
The Range Rover Sport with the base 3.0L engine size is in road tax band L, with a combined showroom and annual road tax of just over £1,000.

Land Rover Range Rover Sport 3.6
Another Range Rover Sport model runs on a 3.6L engine and falls into road tax band M, with showroom tax of £950 and annual tax of £435.

Other laws may apply to the Land Rover in terms of road tax. For example, a pre-1972 model will not incur road tax at all under the "Historic Road Status" law on the books in the U.K.

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