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My bad - correction, not "tax credit" - "tax deduction". For anyone in the market for a qualifying pruchase, this might be good news. Never heard about it in '04-'07, and didn't know about it for this year until it was mentioned at the meet Wed. night.
Looks like the same thing we had 2004-2007... Except it no longer applies to powered boats...
Yeah I was hoping this was a price deduction of 3500 like the Cash for Clunkers but it's not. It's a sales tax deduction against income tax which is hardly worth it since it just drops your adjusted gross income by the amount of sales tax paid.
From AMA article linked above:
To illustrate the impact of the tax deduction, consider the case of a new motorcycle purchase of $10,500. For a 7.5 percent sales tax rate, the tax would be $787.50. To take advantage of the new law, purchasers would include that amount on their 2009 federal income tax return, meaning that their taxable income would be reduced by that amount before taxes are calculated. States set their own sales tax rates, so the actual amount of savings will depend on the taxpayer's state and tax rate.
From IRS site:
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.
It's at least better than a kick in the nuts... :-)
I don't think you can make that comparison without having it done... swing by after work... :nutkick:Quote:
Originally Posted by tailchaser
I'll be busy packing... Tell ya what... Swing by the house, and we'll Roshambo over who gets to buy the pizza and beer...Quote:
Originally Posted by Dave04
Heh... you win... ergo you buy!Quote:
Originally Posted by tailchaser