mustanggt500 Posted January 10, 2010 Report Share Posted January 10, 2010 I seem to remember someone posting in a thread about there being tax credits or tax breaks or something in regards to buying a new car in 2009. Does anyone have any info on this? Basically I paid for my car in full during the month of December 2009 for a 2010 gt500, but wont get the car till January I think. So when I send in my taxes here in another week or so do I qualify for any tax benefits for this situation or no? And if so what do I need to claim them? Thanks much, Nic Link to comment Share on other sites More sharing options...
lawdude Posted January 10, 2010 Report Share Posted January 10, 2010 http://www.irs.gov/newsroom/article/0,,id=204519,00.html Link to comment Share on other sites More sharing options...
jpierson Posted January 10, 2010 Report Share Posted January 10, 2010 Can someone dumb this down for me? What can we expect and should I bring the sales sheet to my accountant? Thanks! Link to comment Share on other sites More sharing options...
Grabber Posted January 10, 2010 Report Share Posted January 10, 2010 Can someone dumb this down for me? What can we expect and should I bring the sales sheet to my accountant? Thanks! Easy. Just bring him the paperwork that the dealer gave you. The sales agreement. That shows all the taxs and fees. I plan on doing this same thing on my taxs for my new work truck. Link to comment Share on other sites More sharing options...
petrong1186 Posted January 10, 2010 Report Share Posted January 10, 2010 Can someone dumb this down for me? What can we expect and should I bring the sales sheet to my accountant? Thanks! absolutely bring the purchase info to your tax accountant. he/she will ensure that you qualify for and receive your deduction Link to comment Share on other sites More sharing options...
ChrisSD Posted January 10, 2010 Report Share Posted January 10, 2010 I don't get it. How is this new? You have always been able to deduct taxes paid on vehicle purchases if you itemize.... Link to comment Share on other sites More sharing options...
Grabber Posted January 10, 2010 Report Share Posted January 10, 2010 I don't get it. How is this new? You have always been able to deduct taxes paid on vehicle purchases if you itemize.... Very true. Link to comment Share on other sites More sharing options...
Sudguy4 Posted January 10, 2010 Report Share Posted January 10, 2010 This new credit is for SALES TAX paid on a new vehicle purchase, not the ad velorem taxes we all tradtionally get to deduct each year if we itemize. The IRS has not allowed a sales tax deduction on a new car purchase prior to this year. -Sudguy4 Link to comment Share on other sites More sharing options...
jmn444 Posted January 10, 2010 Report Share Posted January 10, 2010 OK, I haven't prepared a 1040 yet this year, but here's how the new break works: You take in your purchase doc that shows the sales tax paid, and whether you itemize or not, you will get that deduction, it has effectively become an above the line deduction for this year. Taxpayers have been allowed to deduct sales taxes over the past few years, can't remember which year that started, BUT it was only when itemizing AND only if the sales taxes exceeded your state & local income taxes that you would see a benefit from doing so.... As an example, if you bought a $25k new car, and paid 7% sales tax, and had taxable income above $33,950 (single person), you would save about $438 in taxes with this break, so it is a meaningful change in the law if you were in the market for a new car... Hope that helps! Link to comment Share on other sites More sharing options...
jmn444 Posted January 10, 2010 Report Share Posted January 10, 2010 also, it doesn't matter if the vehicle was paid in full or financed, it's just based on the sale occuring... Link to comment Share on other sites More sharing options...
lawdude Posted January 10, 2010 Report Share Posted January 10, 2010 Unless I'm misreading, in order to qualify, the deduction is reduced for persons with certain incomes and eliminated for persons above the cap. Link to comment Share on other sites More sharing options...
jmn444 Posted January 10, 2010 Report Share Posted January 10, 2010 yes, but phase outs aren't new to just about any deduction out there.... guess i should have mentioned that too though! it is allowed for AMT though since you are bringing up higher income issues... Link to comment Share on other sites More sharing options...
cbr1000 Posted January 10, 2010 Report Share Posted January 10, 2010 back to the original post... Are you sure you qualify? If you got the car after 1/1 I wouldn't think you fall within the time frame for tax credit. Paying for something and owning something are different - related to taxes... I don't claim to know one way or the other, but seems to me if you didn't have full ownership by 12/31/09 you may have some problems? Does anybody know if the excise tax (gas guzzler tax) is deductible? Everything I've read seems to point towards it being deductible. I have not found anything that said very clearly that it is. Copy/pasted from another site: What is the deduction for sales taxes and how does it work. Congress thought it would be a good idea to boost consumer spending aimed at the auto industry by allowing consumers to deduct car sales taxes for the 2009 year. Congress almost passed a bill that allows them to deduct the interest on car payments too, but the cost of this was too expensive. The sales tax deduction for new cars is part of the stimulus bill that President Obama signed in 2009. Step 2The sales tax deduction for new car purchases is limited to new cars purchased paid on up to $49,500 of the purchase price of the new car. The limited tax deduction is also phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and $240,000 and $250,000 for married filing jointly taxpayers. Step 3There is also a timeframe to be eligible to deduct sales taxes on new car purchases. The IRS only allows taxpayers to deduct sales taxes on new car purchases if the car was purchased after February 16, 2009, and before January 1, 2010. Step 4 The sales tax deduction for new car purchases is available regardless of whether a taxpayer itemizes their deductions on their tax return. This will allow all taxpayers to take this special deduction. The deduction can only be taken on the 2009 tax return. Link to comment Share on other sites More sharing options...
Ripcurrent Posted January 11, 2010 Report Share Posted January 11, 2010 This was worth thousands to me when I bought my 2010 last year since the sales tax rate here is almost 10%. Thanks Obama. Link to comment Share on other sites More sharing options...
SVT NAJA Posted January 11, 2010 Report Share Posted January 11, 2010 This was worth thousands to me when I bought my 2010 last year since the sales tax rate here is almost 10%. Thanks Obama. +4,487.55 to be exact! Hmmmmmm.... that could buy a set of hi-perf brakes.... Link to comment Share on other sites More sharing options...
jsdeweyusmc Posted January 11, 2010 Report Share Posted January 11, 2010 I can tell you all that it is easy to get the tax credit on your Shelby. I used Turbo Tax and my price was over the amount but it took it back down to the correct amount and adjusted the sales tax accordingly. I'm getting $588.00 more on my return because of the credit. Link to comment Share on other sites More sharing options...
SVT NAJA Posted January 11, 2010 Report Share Posted January 11, 2010 I can tell you all that it is easy to get the tax credit on your Shelby. I used Turbo Tax and my price was over the amount but it took it back down to the correct amount and adjusted the sales tax accordingly. I'm getting $588.00 more on my return because of the credit. jsd, What does Turbo Tax say about the window sticker Gas Guzzler tax? Is it a deductible "excise" tax? Semper Fi Link to comment Share on other sites More sharing options...
jmn444 Posted January 11, 2010 Report Share Posted January 11, 2010 +4,487.55 to be exact! Hmmmmmm.... that could buy a set of hi-perf brakes.... It's not a credit, you will take that deduction and multiply it by your tax rate in order to get the tax savings... not quite big brake money! Link to comment Share on other sites More sharing options...
Rod_Michel Posted January 12, 2010 Report Share Posted January 12, 2010 Good thread full of information, really appreciate it. back to the original post... Are you sure you qualify? If you got the car after 1/1 I wouldn't think you fall within the time frame for tax credit. Paying for something and owning something are different - related to taxes... I don't claim to know one way or the other, but seems to me if you didn't have full ownership by 12/31/09 you may have some problems? Does anybody know if the excise tax (gas guzzler tax) is deductible? Everything I've read seems to point towards it being deductible. I have not found anything that said very clearly that it is. Copy/pasted from another site: What is the deduction for sales taxes and how does it work. Congress thought it would be a good idea to boost consumer spending aimed at the auto industry by allowing consumers to deduct car sales taxes for the 2009 year. Congress almost passed a bill that allows them to deduct the interest on car payments too, but the cost of this was too expensive. The sales tax deduction for new cars is part of the stimulus bill that President Obama signed in 2009. Step 2The sales tax deduction for new car purchases is limited to new cars purchased paid on up to $49,500 of the purchase price of the new car. The limited tax deduction is also phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and $240,000 and $250,000 for married filing jointly taxpayers. Step 3There is also a timeframe to be eligible to deduct sales taxes on new car purchases. The IRS only allows taxpayers to deduct sales taxes on new car purchases if the car was purchased after February 16, 2009, and before January 1, 2010. Step 4 The sales tax deduction for new car purchases is available regardless of whether a taxpayer itemizes their deductions on their tax return. This will allow all taxpayers to take this special deduction. The deduction can only be taken on the 2009 tax return. Link to comment Share on other sites More sharing options...
ChrisSD Posted January 12, 2010 Report Share Posted January 12, 2010 I almost crapped my pants when someone said it was a credit! Darn! Link to comment Share on other sites More sharing options...
jsdeweyusmc Posted January 12, 2010 Report Share Posted January 12, 2010 jsd, What does Turbo Tax say about the window sticker Gas Guzzler tax? Is it a deductible "excise" tax? Semper Fi Turbo Tax has no info on the guzzler tax. Link to comment Share on other sites More sharing options...
cbr1000 Posted January 12, 2010 Report Share Posted January 12, 2010 Turbo Tax has no info on the guzzler tax. Did you get a prompt related to Excise Taxes? Link to comment Share on other sites More sharing options...
jsdeweyusmc Posted January 12, 2010 Report Share Posted January 12, 2010 Did you get a prompt related to Excise Taxes? nothing Link to comment Share on other sites More sharing options...
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