Write Off Sales Tax

Micas · 12-04-2009, 09:38 AM

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

Quote:

New Car Purchases

Taxpayers who buy new car before Jan. 1, 2010, may deduct sales and excise taxes and other fees on as much as $49,500 of the purchase price. This provision has generous phase-outs: It disappears between $250,000 and $260,000 of modified adjust gross income for married couples and $125,000 and $135,000 for singles.

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.

dweedlebug · 12-04-2009, 02:30 PM

FYI -- Good info regardless, but it REALLY is not as much as most people think.

Look at the back of the Schedule A form for the calculation. A $30,000 car at around 7% tax gets to deduct ~$150.

zip159 · 12-04-2009, 02:46 PM

Quote:

Originally Posted by dweedlebug

FYI -- Good info regardless, but it REALLY is not as much as most people think.

Look at the back of the Schedule A form for the calculation. A $30,000 car at around 7% tax gets to deduct ~$150.

It really depends on your tax bracket.

Car: 30,000
Taxes @ 7%: 2,100

Estimating 16% for taxes still equals $336. Sounds good to me.

dweedlebug · 12-04-2009, 03:50 PM

Quote:

Originally Posted by zip159

It really depends on your tax bracket.

Car: 30,000
Taxes @ 7%: 2,100

Estimating 16% for taxes still equals $336. Sounds good to me.

Agree totally -- Money is money.

FuszNissan · 12-04-2009, 03:51 PM

It's Free money!

zmyride · 12-04-2009, 06:31 PM

Quote:

Originally Posted by zip159

It really depends on your tax bracket.

Car: 30,000
Taxes @ 7%: 2,100

Estimating 16% for taxes still equals $336. Sounds good to me.

Mine is $32000.
Tax is $3120 (9.75% in CA where i live)

I'm in the 30% tax bracket. so $3120 x 30% = $936 tax refundable.

Not bad.

pulpz · 12-04-2009, 09:33 PM

Anybody know if this applies to tax paid on new lease initiated in 2009?

jookiyaya · 12-04-2009, 09:51 PM

anyone know for maryland taxes?

im really interested. i purchased mine for around 34k.

what is maryland's tax bracket and how much can i expect to get back? please msg me =) i always like to do my w-2's first thing in january instead of waiting until march or something. plus i need the money haha.

KaienZ34 · 12-04-2009, 11:43 PM

$ub$cribed

Micas · 12-05-2009, 12:29 AM

Quote:

Originally Posted by jookiyaya

anyone know for maryland taxes?

This is for your federal return, not state. You should know how much you paid in state taxes, and you can deduct it on your federal return. The return instructions should have detailed information on how to complete the deduction.

Of course.. this does not apply to those that simply take the standard deduction. You'd have to itemize.

texmedic · 12-05-2009, 06:32 AM

its been this way in Texas for a while and I luuuuuvvvvv it! I deduct, well what dont I deduct!

Micas · 12-05-2009, 12:21 PM

Quote:

Originally Posted by texmedic

its been this way in Texas for a while and I luuuuuvvvvv it! I deduct, well what dont I deduct!

What's been this way in Texas for a while? Texas has no state income tax, and you've never been able to deduct sales tax from a car purchase on your federal return before.

zip159 · 12-06-2009, 12:14 AM

Quote:

Originally Posted by Micas

This is for your federal return, not state. You should know how much you paid in state taxes, and you can deduct it on your federal return. The return instructions should have detailed information on how to complete the deduction.

Of course.. this does not apply to those that simply take the standard deduction. You'd have to itemize.

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.

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.

dudafunk · 12-06-2009, 11:10 AM

Quote:

Originally Posted by zmyride

Mine is $32000.
Tax is $3120 (9.75% in CA where i live)

I'm in the 30% tax bracket. so $3120 x 30% = $936 tax refundable.

Not bad.

Your 30% sounds like FEDERAL TAX. Where does the question of federal tax brackets come in? I was thinking this is how it works:

Car: 30,000
NY sales tax: 8.625% = $2587
NY sales tax table for salary $20k+ = 6.85%
So refund = 6.85% of 2,587 = $177.

And so, agree with the OP - savings are really negligible. When the quoted post said $936, I felt I had been wrong about this tax credit law. Can someone confirm?

12-04-2009, 03:51 PM	#5 (permalink)
FuszNissan A True Z Fanatic Join Date: May 2009 Location: St. Louis Posts: 14,275 Drives: Pure Sex Rep Power: 541	It's Free money! __________________ Mods: Too Many to list! LouFuszNissan ZDAYZ 2012

12-04-2009, 09:33 PM	#7 (permalink)
pulpz Enthusiast Member Join Date: May 2009 Location: Dayton, Ohio Posts: 281 Drives: 09 PG 370Z Sport 6MT Rep Power: 15	Anybody know if this applies to tax paid on new lease initiated in 2009? __________________ 2016 Cayman GTS 6MT / 2017 Q60 Sport / 2012 Acura TL SH-AWD / 2015 Lexus IS 350 AWD F-Sport (Sold) / 2009 PG 370Z Sport 6MT, (Sold) / 2003 SS 350Z Enthusiast 6MT (Sold)

12-04-2009, 09:51 PM	#8 (permalink)
jookiyaya Enthusiast Member Join Date: Jul 2009 Location: maryland Posts: 262 Drives: 2010 40th Z!?!? Rep Power: 15	anyone know for maryland taxes? im really interested. i purchased mine for around 34k. what is maryland's tax bracket and how much can i expect to get back? please msg me =) i always like to do my w-2's first thing in january instead of waiting until march or something. plus i need the money haha. __________________ "370z gives you wings!! "

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12-04-2009, 02:30 PM	#2 (permalink)
dweedlebug Base Member Join Date: Jan 2009 Location: USA Posts: 97 Drives: '11 Nismo #142 - Red Rep Power: 16	FYI -- Good info regardless, but it REALLY is not as much as most people think. Look at the back of the Schedule A form for the calculation. A $30,000 car at around 7% tax gets to deduct ~$150.

12-04-2009, 11:43 PM	#9 (permalink)
KaienZ34 A True Z Fanatic Join Date: Oct 2009 Location: LA. not L.a. Posts: 21,652 Drives: Z34 Tour/Sport Rep Power: 177	$ub$cribed

12-05-2009, 06:32 AM	#11 (permalink)
texmedic Base Member Join Date: Jun 2009 Location: Austin Texas Posts: 192 Drives: 09 370Z Rep Power: 15	its been this way in Texas for a while and I luuuuuvvvvv it! I deduct, well what dont I deduct!