tax break for buying a bike

[keithaba]

Souce: CNN

"Temporary deduction for car buyers: The bill would let those who buy a new car, light vehicle, recreational vehicle or motorcycle in 2009 deduct state and local sales taxes as well as any excise tax charged in the purchase. The deduction would be available to those earning less than $125,000 ($250,000 for joint filers). It will be an above-the-line deduction, meaning even taxpayers who don't itemize may take it in addition to the standard deduction. Estimated cost: $1.7 billion."

It's only state and local taxes, but hey anything helps right?

Now if only Yamaha had made the GENIII for 09, I'd be in!

 

[odot]

Not for us in texas. Don't hep a sniggle.

 

[HaulinAshe]

Hey Keith,

You buying two so you'll have a spare?

 

[Big Sky]

Another tax break we won't get. No sales taxes - at all - here. But I guess that's sort of a tax break right there, isn't it? ...except we have higher property and state income taxes as a result. No way to win.

 

[Fred W]

No sale or income tax here.

But I don't need a new bike and wouldn't buy a new car (waste of money).

 

[jmdaniel]

Not for us in texas. Don't hep a sniggle.

How do you figure that? No one in Texas pays sales tax? I know we do here in Austin, and if the politicos could ban it anywhere, it would be here in the capital city.

Unless you mean everyone in Texas makes over $125K a year?

:blink:

 

[DeweyIsgod]

Not for us in texas. Don't hep a sniggle.

How do you figure that? No one in Texas pays sales tax? I know we do here in Austin, and if the politicos could ban it anywhere, it would be here in the capital city.

Unless you mean everyone in Texas makes over $125K a year?

:blink:

We've been getting that benefit for a long time. Since we don't have a state income tax in the great state of Texas, we get to deduct sales taxes from the federal. You have two choices:

A) keep all your receipts from everywhere all year long or

B) use a formula involving your income and local tax rate and add sales tax from major purchases such as vehicles.

I don't think you even have to itemize to get the deduction.

 

[ShinyPartsUp]

Another tax break we won't get. No sales taxes - at all - here. But I guess that's sort of a tax break right there, isn't it? ...except we have higher property and state income taxes as a result. No way to win.

Ditto in Oregon. If the Federales were serious they'd give a tax break to everyone buying fuel efficient cars based on the average of states' sales taxes across the country. Emissions created out West make it east ya know.... I'm just sayin'.

 

[jmdaniel]

We've been getting that benefit for a long time. Since we don't have a state income tax in the great state of Texas, we get to deduct sales taxes from the federal. You have two choices: A) keep all your receipts from everywhere all year long or

B) use a formula involving your income and local tax rate and add sales tax from major purchases such as vehicles.

I don't think you even have to itemize to get the deduction.

The original post doesn't mention anything about not being able to take that tax deduction because the buyer is filing for state sales tax deduction, which by the way, isn't just a Texas thing. Anyone can do it, it just tends to be more advantageous for states with no income tax.

 

[keithaba]

I'll need at least one extra for spare parts!

Hey Keith,You buying two so you'll have a spare?

 

[SnowAviation]

Bump

Just a reminder for those who bought a bike in 2009...and make less than $260k / year.

That should cover just about everyone but that Bustanut guy, I hear he's loaded.

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.

 

[gearman]

My business partner just signed the papers on a new Guzzi yesterday. He was going to wait until spring but figured what the hey. Besides, it'll give him some extra time to farkle.