Tax break on a new car purchase?
11-25-2009, 07:58 AM
#1
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Tax break on a new car purchase?
Hello guys,
I heard IRS is offering a tax break on a new car purchase that are done before 12/31/2009.
Does this apply to ALL manufacturers?
What kind of tax benefit are they talking about? Full return of the sales tax paid for the vehicle?
I don't see the hype about this deal and am kinda bummed. Cuz I think it's a great deal.
Anyone have further info about this tax break?
Thanks,
Dan
I heard IRS is offering a tax break on a new car purchase that are done before 12/31/2009.
Does this apply to ALL manufacturers?
What kind of tax benefit are they talking about? Full return of the sales tax paid for the vehicle?
I don't see the hype about this deal and am kinda bummed. Cuz I think it's a great deal.
Anyone have further info about this tax break?
Thanks,
Dan
11-25-2009, 11:09 AM
#4
Originally Posted by danjanoop,Nov 25 2009, 10:50 AM
Sales tax paid for a new vehicle can be used as an itemized deduction against your federal income taxes.
Dig.
Dig.
I'm emailing my accountant today!
11-25-2009, 11:26 AM
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Originally Posted by nearwater4me,Nov 25 2009, 02:21 PM
No. I read it only applies to new car purchases of up to $49500
Dan
Dan
11-25-2009, 11:28 AM
#7
This is a 2009 tax CREDIT. That means that they will give you back, dollar for dollar, any sales tax you paid on your NEW vehicle, up to a purchase price of $49,500.
In Texas (and most other states), you get a tax DEDUCTION for the value of the sales tax on any vehicle (used or new). So, you don't get it all back, just a portion of it.
In Texas (and most other states), you get a tax DEDUCTION for the value of the sales tax on any vehicle (used or new). So, you don't get it all back, just a portion of it.
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11-25-2009, 12:40 PM
#9
Yes, up to the amount of taxes paid on $49,500 of the purchase price.
11-25-2009, 08:14 PM
#10
Originally Posted by JonBoy,Nov 25 2009, 02:28 PM
This is a 2009 tax CREDIT. That means that they will give you back, dollar for dollar, any sales tax you paid on your NEW vehicle, up to a purchase price of $49,500.
In Texas (and most other states), you get a tax DEDUCTION for the value of the sales tax on any vehicle (used or new). So, you don't get it all back, just a portion of it.
In Texas (and most other states), you get a tax DEDUCTION for the value of the sales tax on any vehicle (used or new). So, you don't get it all back, just a portion of it.
For the last several years, it's been a tax deduction, not a credit (but I'm not up to speed on all the incentive handouts)