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Zacks
| | Posted on Monday, November 09, 2009 - 07:02 pm: | 
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For all those who picked up a fire sale bike, there's more good news in case you haven't paid attention to all the noise.
As part of the American Recovery and Reinvestment Act early this year, there was an amendment to deduct state sales tax on a new vehicle purchase. I'm not a tax accountant, so it's up to you to read the details, but 'qualified motor vehicles' are '...a passenger automobile, light truck or motorcycle...'
I can't get the link to work in the post, so you'll have Google "Sales Tax Deduction for Vehicle Purchases" and check the IRS link that comes up. |
Court
| | Posted on Monday, November 09, 2009 - 07:20 pm: |
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HERE it is.
http://www.irs.gov/newsroom/article/0,,id=204519,00.html
quote:IR-2009-88, Oct. 7, 2009
WASHINGTON — With 2010 models arriving in dealer showrooms, the Internal Revenue Service reminds taxpayers that purchasing a new car, light truck, motor home or motorcycle could qualify them for a special deduction for the state and local sales and excise taxes on their 2009 tax returns.
Purchases made before Jan. 1, 2010, will qualify for this deduction under the American Recovery & Reinvestment Act of 2009 (ARRA).
The deduction is limited to the sales and excise taxes and similar fees paid on up to $49,500 of the purchase price of a new vehicle. The deduction is reduced for joint filers with modified adjusted gross incomes (MAGI) between $250,000 and $260,000 and other taxpayers with MAGI between $125,000 and $135,000. Taxpayers with higher incomes do not qualify.
Taxpayers who make qualifying new vehicle purchases this year can estimate the deduction with the help of Worksheet 10 in IRS Publication 919, How Do I Adjust My Withholding? Lines 10a to 10k of the worksheet show how to take into account purchases above the $49,500 limit, as well as the reduced deductions for taxpayers at higher income levels.
The special deduction is available regardless of whether taxpayers itemize deductions on their returns. Taxpayers who do not itemize will add this additional amount to the standard deduction on their 2009 tax return.
For those that have questions about the deduction for sales tax and other fees, these questions and answers might help. A videovideo on the IRS Youtube.com channel and audio podcasts in English and Spanish are also available to help taxpayers take full advantage of the deduction.
(Message edited by court on November 09, 2009) |
Dmhines
| | Posted on Monday, November 09, 2009 - 07:33 pm: |
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Keep in mind that this is a deduction not a rebate. Depending on your tax bracket ... you should get around 25 cents for every dollar in tax you spent. |
Zac4mac
| | Posted on Monday, November 09, 2009 - 07:52 pm: |
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That's a better return than kids... |
Zacks
| | Posted on Monday, November 09, 2009 - 08:00 pm: |
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But, you can't sell the kids after a couple of years... - Not that I intend to  . The 1125 that is, kids are already gone. Didn't get anything for them either |
Augustus74
| | Posted on Monday, November 09, 2009 - 11:03 pm: |
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So does any year bike qualify as long as it is new(never titled)? I've seen people buying leftover '07's and even saw someone post about buying a "new" '04XBR that the dealer had laying around. |
Zacks
| | Posted on Monday, November 09, 2009 - 11:22 pm: |
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Read the IRS link page - it's the way I read it. New, not used qualify. Cars, trucks, motorcycles, RV's if under a certain weight and all are dependent on your personal income and the cost of the vehicle. I figure take it while you can, they'll take it back some way later. |
Nickg
| | Posted on Thursday, November 12, 2009 - 04:40 pm: |
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in nj...major purchase sales tax has been deductible from state tax for a while i understand |
Avc8130
| | Posted on Thursday, November 12, 2009 - 04:47 pm: |
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Nickg,
ONLY if you spent more in sales tax than you paid in state income tax. Now you can deduct the sales tax on the vehicle AND you state income tax paid on your federal taxes (the gf is studying to be a CPA).
ac |
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