1. Attachments are working again! Check out this thread for more details and to report any other bugs.

Proposed Tax Deductions for New Car Purchases

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by ggood, Feb 4, 2009.

  1. ggood

    ggood Senior Member

    Joined:
    Jan 17, 2004
    2,436
    517
    0
    Location:
    Houston, TX
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Advanced
    Angling to spur automobile sales as part of the economic stimulus package, the Senate voted to add an $11 billion provision to the bill that will allow most Americans to claim a tax deduction for the sales tax and any loan interest on the purchase of a new car between Nov. 12, 2008, and the end of 2009. Click HERE for story.
     
    #1 ggood, Feb 4, 2009
  2. fredthepostman

    fredthepostman Member

    Joined:
    Jan 7, 2009
    422
    7
    0
    Location:
    boothwyn pa
    Vehicle:
    2010 Prius
    Model:
    III
    Every little bit helps!
     
    #2 fredthepostman, Feb 4, 2009
  3. sl7vk

    sl7vk Member

    Joined:
    Jul 3, 2006
    518
    23
    0
    Location:
    Salt Lake City
    Vehicle:
    2006 Prius
    This is stupid. Just do a MPG tax credit like in 2006.
    With this plan, trading in my 06, paying cash for the difference would amount to a deduction of about 350 bucks...... Or about 100 bucks back in my pocket.
    Woopdy freaking dooooo.....

    Go back to fuel effeciency credits.... They don't necessarily have to be Hybrid credits and don't cap them out by maker.
     
    #3 sl7vk, Feb 4, 2009
  4. fredthepostman

    fredthepostman Member

    Joined:
    Jan 7, 2009
    422
    7
    0
    Location:
    boothwyn pa
    Vehicle:
    2010 Prius
    Model:
    III
    I agree but according to the article it would save $1500 for the average family. I do wish they would bring back the hybrid tax break they had before.
     
    #4 fredthepostman, Feb 4, 2009
  5. hampdenwireless

    hampdenwireless Active Member

    Joined:
    Aug 21, 2005
    1,104
    86
    0
    Location:
    Baltimore MD
    Vehicle:
    Other Non-Hybrid
    The credit should be for higher mpg cars only and trucks only. Its just a waste of $$$ to give it to people who have ALREADY bought a car as well.

    $3000 for any high mpg hybrid (Escape, Insight, Prius, Camry, Fusion etc) or $1000 for any car over 30mpg would work.

    $5000 for a 20 mile plus plug in or pure electric (not as much for a NEV though)
     
    #5 hampdenwireless, Feb 5, 2009
  6. lamusic

    lamusic New Member

    Joined:
    Dec 10, 2008
    7
    0
    0
    Location:
    Los Angeles, CA
    Vehicle:
    2009 Prius
    --Do you know if this is how the measure passed? Because I bought my Prius in Dec 2008 and if it's back dated to then that's great news for me! Also, does this mean the sales tax is refunded to us or we just deduct it from our gross income on our taxes??
     
    #6 lamusic, Feb 14, 2009
  7. ggood

    ggood Senior Member

    Joined:
    Jan 17, 2004
    2,436
    517
    0
    Location:
    Houston, TX
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Advanced
    Sales tax deduction passed. Most people in states without income tax already had this if they itemized. The car loan interest deduction did not pass.

    Detailed Summary:

    Taxpayers who itemize deductions may elect to deduct state and local general sales and use taxes instead of state and local income taxes, for tax years beginning before 2010.

    New law. For tax years beginning after Dec. 31, 2008, the Recovery Act adds an increased standard deduction for qualified motor vehicle taxes. (Code Sec. 164(b)(6) and Code Sec. 63(c)(1)(E), as amended by Act Sec. 1008) Qualified motor vehicle taxes are State or local sales or excise taxes imposed on the purchase of a qualified motor vehicle. (Code Sec. 164(b)(6)(A)) Only taxes on a that portion of the cost of qualified motor vehicle not exceeding $49,500 ($24,750 for a married person filing separately) may be deducted. (Code Sec. 164(b)(6)(B))

    The amount of sales or excise taxes that may be treated as qualified motor vehicle taxes is phased out ratably for a taxpayer with modified AGI between $125,000 and $135,00 ($250,000 and $260,000 on a joint return). (Code Sec. 164(b)(6)(C))

    A qualified motor vehicle is a (1) passenger automobile, light truck or motorcycle the gross vehicle rating of which is not more than 8,500 pounds and (2) a motor home the original use of which commences with the taxpayer. (Code Sec. 164(b)(6)(D))

    The deduction for qualified motor vehicle taxes is not available to a taxpayer who elects to deduct state and local sales and uses in lieu of income taxes as an itemized deduction. (Code Sec. 164(b)(6)(F))

    The deduction for qualified motor vehicle taxes is allowed in computing the AMT. (Code Sec. 56(b)(1)(E))
     
    #7 ggood, Feb 14, 2009
(You must log in or sign up to post here.)