2009 New Car Tax Credit.
03-26-2009, 09:51 PM
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Vehicle: 2001 Hyundai Tiburon, 2004 Kia Sorento, 2010 Kia Soul
Some are probably aware that the rediculous "stimulus" package that got passed for the US had a tax credit involved for folks buying new cars this year by the 31st of December.
Anyways, I made this thread for info on that credit. Post up what you know, or what you can find.
http://thefinancebuff.com/2009/02/tax-brea...-a-new-car.html
I'm trying to find more specifics and examples, maybe a calculator.
Anyways, I made this thread for info on that credit. Post up what you know, or what you can find.
http://thefinancebuff.com/2009/02/tax-brea...-a-new-car.html
QUOTE
2. Tax deduction for buying a new car. The stimulus law also gives a tax deduction for sales tax if you buy a new car (not a used car). To qualify for the tax deductions, you must buy a new car under $49,500 between the date the law is signed and 12/31/2009. There’s also an AGI limit of $125k (single) or $250k (married filing jointly), and a phase-out range of $10k. You can take advantage of this whether you itemize your deductions or use the standard deduction.
Bought Before 2/17/2009 by anybody = No Tax Break.
Bought from 2/17/2009 - 12/31/2009 and Adjusted Gross Income under $125k/$250k (single/joint) (phase out to $135k/$260k); buy a new car under $49,500 and get a tax deduction for sales tax.
Bought Before 2/17/2009 by anybody = No Tax Break.
Bought from 2/17/2009 - 12/31/2009 and Adjusted Gross Income under $125k/$250k (single/joint) (phase out to $135k/$260k); buy a new car under $49,500 and get a tax deduction for sales tax.
I'm trying to find more specifics and examples, maybe a calculator.
03-26-2009, 10:21 PM
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because Tennessee has no state income tax, we can take a standard Sales Tax Deduction. On TurboTax and H&R Block's website, they ask about any "large purchases" such as Cars, Motorcycles, Boats, etc. I took the standard sales tax deduction, and it put the sales tax for my 2008 vehicle purchase on top of that standard sales tax deduction, giving me a total of like $4,300 in sales tax deductions.
it's already built into the H&R Block and TurboTax web guides.
Because I can only take the Sales Tax deduction, the stimulus might not apply to me. This MAY make it so you can take a vehicle deduction regardless of whether you choose the income tax or sales tax deduction.
....edit....THE REAL INFO IS BELOW...
Here's the IRS link. The reason it's different from the previous available deduction is that you DON'T have to itemize your deductions to take this.
http://www.irs.gov/newsroom/article/...204519,00.html
So... what if you live in a state like Oregon, that has no sales tax? Or what if you live in one of the 7 states with no income tax and have this deduction already available to you? Then you're like me, and you get nothing out of this stimulus package.
here's my example:
You buy a $25,000 Genesis Coupe. You have a local sales tax of 6.5% on the vehicle, bringing sales tax to $1,625. From what I'm reading, you're able to take that $1,625 as a deduction REGARDLESS if you take the standard deduction or itemize your deductions. It's just an added deduction for you.
We have very high sales tax in Tennessee to make up for no income tax. I was able to deduct $2,400 I think in sales tax from my vehicle purchase in 2008.
.....
wait til you read about the "Making work pay" part of the stimulus... we should all be seeing a difference in our paycheck deductions within the next week or two. But, if you don't work, you still get paid! http://www.irs.gov/newsroom/article/...204447,00.html and http://www.heritage.org/research/taxes/wm2240.cfm
sorry for being off-topic, but this damn stimulus is full of shit.
it's already built into the H&R Block and TurboTax web guides.
Because I can only take the Sales Tax deduction, the stimulus might not apply to me. This MAY make it so you can take a vehicle deduction regardless of whether you choose the income tax or sales tax deduction.
....edit....THE REAL INFO IS BELOW...
Here's the IRS link. The reason it's different from the previous available deduction is that you DON'T have to itemize your deductions to take this.
http://www.irs.gov/newsroom/article/...204519,00.html
QUOTE
Sales Tax Deduction for Vehicle Purchases
The American Recovery and Reinvestment Act of 2009 provides a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles through 2009. The deduction is available regardless of whether a taxpayer itemizes deductions on Schedule A. Purchases before Feb. 17, 2009, are not eligible for this special deduction.
The deduction is limited to the tax on up to $49,500 of the purchase price of an eligible motor vehicle. The deduction is phased out for joint filers with modified adjusted gross income between $250,000 and $260,000 and other taxpayers with modified AGI between $125,000 and $135,000.
The American Recovery and Reinvestment Act of 2009 provides a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles through 2009. The deduction is available regardless of whether a taxpayer itemizes deductions on Schedule A. Purchases before Feb. 17, 2009, are not eligible for this special deduction.
The deduction is limited to the tax on up to $49,500 of the purchase price of an eligible motor vehicle. The deduction is phased out for joint filers with modified adjusted gross income between $250,000 and $260,000 and other taxpayers with modified AGI between $125,000 and $135,000.
So... what if you live in a state like Oregon, that has no sales tax? Or what if you live in one of the 7 states with no income tax and have this deduction already available to you? Then you're like me, and you get nothing out of this stimulus package.
here's my example:
You buy a $25,000 Genesis Coupe. You have a local sales tax of 6.5% on the vehicle, bringing sales tax to $1,625. From what I'm reading, you're able to take that $1,625 as a deduction REGARDLESS if you take the standard deduction or itemize your deductions. It's just an added deduction for you.
We have very high sales tax in Tennessee to make up for no income tax. I was able to deduct $2,400 I think in sales tax from my vehicle purchase in 2008.
.....
wait til you read about the "Making work pay" part of the stimulus... we should all be seeing a difference in our paycheck deductions within the next week or two. But, if you don't work, you still get paid! http://www.irs.gov/newsroom/article/...204447,00.html and http://www.heritage.org/research/taxes/wm2240.cfm
sorry for being off-topic, but this damn stimulus is full of shit.