Write Off Sales Tax

dudafunk · 12-06-2009, 11:11 AM

Quote:

Originally Posted by zip159

I think I read somewhere that this applies even to people who do not itemize because it's a line added to the 1040 itself. Not 100% sure though.

Yes that is correct.

KaienZ34 · 12-04-2009, 11:43 PM

$ub$cribed

kannibul · 12-06-2009, 01:08 AM

Quote:

Originally Posted by Micas

Just in case some of you guys might not be aware of this;

Those of you that bought/buy in '09 can write off the sales tax of the purchase. It's not a huge amount, but everything helps.

Deduct...not write off.

Micas · 12-06-2009, 03:36 PM

Quote:

Originally Posted by kannibul

Deduct...not write off.

Deduction and write off are the same exact thing.

dudafunk · 12-07-2009, 08:11 AM

^^^ I'm sorry, yes I made a typo. Meant to say deduct cost of tax paid ON the car. And that in the end this saving is negligible for an say an average buyer who say makes 50-70k a year.

zip159 · 12-07-2009, 04:52 PM

Quote:

Originally Posted by dudafunk

^^^ I'm sorry, yes I made a typo. Meant to say deduct cost of tax paid ON the car. And that in the end this saving is negligible for an say an average buyer who say makes 50-70k a year.

The formula is quite simple assuming you don't drop to a lower bracket from your deductions: (Federal Tax Bracket) * (Sales Tax Paid)

@60k/year you're in the 25% tax bracket
If you paid 2,000 on sales taxes on the car then you get back $500. That's almost 2 Playstation 3s!

Quote:

Originally Posted by dudafunk

I guess basically you just subtract the car cost from your taxable income for both federal and state tax forms - and THEN carry on with the usual calculation (apply std deductions etc. etc.)... but anyway, I confirmed, its not going to result in a $900+ saving by any means as someone above pointed out.

It was $900+ for that particular person since he is in the 30% bracket and he paid almost 10% in sales taxes.

dudafunk · 12-07-2009, 06:17 PM

^^^^ Oh okay....

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12-04-2009, 11:43 PM	#2 (permalink)
KaienZ34 A True Z Fanatic Join Date: Oct 2009 Location: LA. not L.a. Posts: 21,652 Drives: Z34 Tour/Sport Rep Power: 179	$ub$cribed

12-07-2009, 08:11 AM	#5 (permalink)
dudafunk Enthusiast Member Join Date: Nov 2009 Location: Long Island, NY Posts: 421 Drives: '09 370z Base Red AT Rep Power: 17	^^^ I'm sorry, yes I made a typo. Meant to say deduct cost of tax paid ON the car. And that in the end this saving is negligible for an say an average buyer who say makes 50-70k a year.

12-07-2009, 06:17 PM	#7 (permalink)
dudafunk Enthusiast Member Join Date: Nov 2009 Location: Long Island, NY Posts: 421 Drives: '09 370z Base Red AT Rep Power: 17	^^^^ Oh okay....