Deducting Sales Tax?

[Daryl LBZ]

I saw on a Chevy Commercial that if you buy a new Chevy before the end of the year the IRS would let you deduct the sales tax. I bought mine in January so does that mean I can do this? If anyone has any info on this I would really appreciate it. Thanks.

[MS3DALE]

Yep,Thats why my Dad bought his Malibu before the end of the year.

I think your good to deduct the tax Daryl.

[RyanbabZ71]

Here are the details.

 

Feb 17th is the start

 

The American Recovery and Reinvestment Act permits taxpayers to take a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles. The deduction is available on new vehicles purchased from Feb. 17, 2009, through Dec. 31, 2009. In states that don't have a sales tax, the law provides a deduction for other taxes or fees paid. This deduction is available whether or not a taxpayer itemizes deductions on Schedule A.

 

The deduction is limited to the taxes and fees paid on up to $49,500 of the purchase price of an eligible 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 IRS Publication 919, How Do I Adjust My Withholding? Lines 10a to 10k on Worksheet 10 take into account purchases above the $49,500 limit, as well as the reduced deductions for taxpayers at higher income levels

[MS3DALE]

Aww man,That just plain sucks!! You bought your truck one month too soon.

[Zembonez]

I saw on a Chevy Commercial that if you buy a new Chevy before the end of the year the IRS would let you deduct the sales tax. I bought mine in January so does that mean I can do this? If anyone has any info on this I would really appreciate it. Thanks.

This isn't new. I've been taking off the sales tax I paid on my vehicles for years. You can deduct any taxes you have to pay from your IRS return (other than Federal of course).

[Daryl LBZ]

Figures the government always screws someone out of something!

[00_Extended]

Figures the government always screws someone out of something!

 

Well I guess everyone that has bought a car since they have started to be sold in the United States circa 1900 until Feb 16th 2009 have all been screwed over by the Government for taxes being able to be written off so at least your not alone

[RyanbabZ71]

Figures the government always screws someone out of something!

 

They didnt screw me

 

I actually gained two deductions this yr

 

Our little one was born 11/12/09 and I bought my truck 11/16/09

[electricchiken7]

I saw on a Chevy Commercial that if you buy a new Chevy before the end of the year the IRS would let you deduct the sales tax. I bought mine in January so does that mean I can do this? If anyone has any info on this I would really appreciate it. Thanks.

This isn't new. I've been taking off the sales tax I paid on my vehicles for years. You can deduct any taxes you have to pay from your IRS return (other than Federal of course).

 

 

Me too!!I've always deducted my sales tax on my return. Is this something different?

[RyanbabZ71]

From my understanding Obama signed something into Law (see dates above) that you get 100% of the sales tax (not a percentage) back from a new vehicle purchase. This was to stimuate vehicle sales.

 

I have deducted my registration fees on my tax return each year. This is different from the sales tax on a new vehicle purchase.

[Daryl LBZ]

Figures the government always screws someone out of something!

 

Well I guess everyone that has bought a car since they have started to be sold in the United States circa 1900 until Feb 16th 2009 have all been screwed over by the Government for taxes being able to be written off so at least your not alone

 

 

 

 

 

True. I just don't understand why they do it so unfair. Why Feburary on why not just go all the way back to January it's only one month. It's because they want to screw people thats all.

[electricchiken7]

From my understanding Obama signed something into Law (see dates above) that you get 100% of the sales tax (not a percentage) back from a new vehicle purchase. This was to stimuate vehicle sales.

 

I have deducted my registration fees on my tax return each year. This is different from the sales tax on a new vehicle purchase.

 

O.K. had not heard about that one. Still not enough to make me run out and buy a new truck. It's good someone is benefiting from it.

[RyanbabZ71]

I think my sales tax on my truck was $2200?, that is a nice chunk of change. This was the main reason why I bought this truck.

[Zembonez]

I saw on a Chevy Commercial that if you buy a new Chevy before the end of the year the IRS would let you deduct the sales tax. I bought mine in January so does that mean I can do this? If anyone has any info on this I would really appreciate it. Thanks.

This isn't new. I've been taking off the sales tax I paid on my vehicles for years. You can deduct any taxes you have to pay from your IRS return (other than Federal of course).

 

 

Me too!!I've always deducted my sales tax on my return. Is this something different?

 

Must be something different? Sales AND property taxes of all kinds have been deductible from Federal Tax returns for as long as I have been doing mine. People filing the short form might not have seen this? I've always itemized my deductions because I had a lot of them.

[steman73]

Why can't I deduct sales tax on everything I buy? I've already been taxed on the money once, tax me again when I spend it, when will they stop re-distributing my wealth???