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I thought that the income tax deduction for new vehicles had expired and that it applied to vehicles purchased in 2009. I found an earlier thread on this subject.

I ran into a friend last night that just bought a new Ford F-150. He was told that the sales tax on this vehicle would be deductilbe this year. I was pleased to hear this as I bought my Challenger at the end of September of this year.

But, I did some Googling and find no evidence of this tax break. Does anyone know? I'm afraid that a car salesman my have misinformed my friend.
 

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That would be nice but I have heard nothing about it.
 

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I beleive your referring to the new car credit that has ended. I can't quite remember but it was sometime around November 2009?

However, if your itemizing your taxes in 2010, or any year for that matter, you can claim the taxes paid on the vehicle to help bring your TXI (taxable income) down.
 

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I beleive your referring to the new car credit that has ended. I can't quite remember but it was sometime around November 2009?

However, if your itemizing your taxes in 2010, or any year for that matter, you can claim the taxes paid on the vehicle to help bring your TXI (taxable income) down.
I do itemize, so I'll be claiming the taxes paid. Thanks for the information.

This does have anything to do with taxes, but when I went to pick up my specialy license plate, I asked the county why my registration fee was exactly $500. I was told that the fee is based on a book value for my car. She looked it up and the "book" value was close to MSRP. This was a fair amount more than what I paid. It cost me about $80 in registration fees. I don't understand why they didn't base it on what I actually paid. They had the paperwork from the dealer in order to figure sales tax. What a crock. At the same time, you can tell them that you paid $5,000 for a used vehicle worth $20,000 and they don't question it.
 

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I do itemize, so I'll be claiming the taxes paid. Thanks for the information.

This does have anything to do with taxes, but when I went to pick up my specialy license plate, I asked the county why my registration fee was exactly $500. I was told that the fee is based on a book value for my car. She looked it up and the "book" value was close to MSRP. This was a fair amount more than what I paid. It cost me about $80 in registration fees. I don't understand why they didn't base it on what I actually paid. They had the paperwork from the dealer in order to figure sales tax. What a crock. At the same time, you can tell them that you paid $5,000 for a used vehicle worth $20,000 and they don't question it.
yeah that is BS
 

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That tax credit was for 09 and it was taken off of your income weather you itemized or not. I filed for it in April, and it is expired for 2010
 

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federal excise tax (gas gussssler ) is applicable on your return....
Please explain exactly which line on your federal 1040 form you apply this. It is my understanding that the Gas Guzzler tax is paid by manufacturer and passed on as a added "charge" to the customer. This is not a tax that can be claimed on any state or federal tax form because it is not a "tax paid". If you are refering to something else, please explain, thanks.
 

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I thought that the income tax deduction for new vehicles had expired and that it applied to vehicles purchased in 2009. I found an earlier thread on this subject.

I ran into a friend last night that just bought a new Ford F-150. He was told that the sales tax on this vehicle would be deductilbe this year. I was pleased to hear this as I bought my Challenger at the end of September of this year.

But, I did some Googling and find no evidence of this tax break. Does anyone know? I'm afraid that a car salesman my have misinformed my friend.
to the best of my knowledge, the federal excise tax is a duty or fee (penalty) the fed. gov. imposes on certain items sold in the us. the gas guzzler tax on a srt8 qualifies (ratio to your tax bracket) for this. on my sticker it was listed at $1300.00... hope this helps some.
 

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to the best of my knowledge, the federal excise tax is a duty or fee (penalty) the fed. gov. imposes on certain items sold in the us. the gas guzzler tax on a srt8 qualifies (ratio to your tax bracket) for this. on my sticker it was listed at $1300.00... hope this helps some.
I was under the impression that the gas guzzler tax was put in place to "discourage" manufacturers from producing fuel inefficient cars WHILE "discouraging" non-fuel-saving-minded purchasers from buying such a vehicle because the manufacturers pass the burden on to the customer.

I can't see how the IRS would allow you deduct this fee (penalty) from your taxes when it was put in place to discourage you how buying such a vehicle... It's like itemizing your speeding and parking tickets.
 

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It is my understanding that the sales tax you pay when purchasing a vehicle is NOT deductible, however the tax you pay yearly which is based on the value of your car is deductible IF you itemize on your Federal Income tax
 

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Sales tax is deductible IF you choose to deduct it over your State income tax you paid for the year. You now have the choice which one you want to deduct but NOT both. You really have to have bought ALOT of stuff to make your sales tax greater than your income tax unless you live in a state with very low or nonextistent income tax. I unfortunately do not, but I ended up spending alot more in sales tax than income tax last year thanks to 2 vehicle purchases and some home remodeling.
 

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Sales tax is deductible IF you choose to deduct it over your State income tax you paid for the year. You now have the choice which one you want to deduct but NOT both. You really have to have bought ALOT of stuff to make your sales tax greater than your income tax unless you live in a state with very low or nonextistent income tax. I unfortunately do not, but I ended up spending alot more in sales tax than income tax last year thanks to 2 vehicle purchases and some home remodeling.
I'm an accountant. Beer Me is correct. If you itemize you choose either the sales taxes you have paid for the year or the state income taxes you have paid, but not both. Not all states have income taxes like Tennessee and Florida. For states such as this the addition of this itemized deduction is a great federal income tax saver.
 

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Discussion Starter #15
Thanks for the feedback!
 

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I'm an accountant. Beer Me is correct. If you itemize you choose either the sales taxes you have paid for the year or the state income taxes you have paid, but not both. Not all states have income taxes like Tennessee and Florida. For states such as this the addition of this itemized deduction is a great federal income tax saver.
What is your take on the gas guzzler tax? I believe you can't apply that anywhere.
 
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