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Motorcycle Tax Deductions in Stimulus Package

Started by rgury, February 18, 2009, 07:21:44 AM

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swampduc

#1
February 18, 2009, 07:33:10 AM
My reading of that, and more importantly, my accountant's, is that the sales tax on new vehicle purchases is deductible.
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NWapex

#2
February 18, 2009, 07:35:32 AM
No sales tax in Oregon  [coffee]
My rides:  2009 M696, couple of cages, a few grass eating get-alongs, and some asics.

Raux

#3
February 18, 2009, 07:38:57 AM
WOW that is a BIG bike
:o
"a motorcycle the gross vehicle weight rating of which is not more than 8,500 pounds"

Desmo Demon

#4
February 18, 2009, 07:56:33 AM
Yeah, I found that a bit humorous......Go out and buy something like a $10,000 bike and deduct the sales tax.....Hmmmm....in South Carolina, there is a $300 tax limit, so deduct $300, look in the tax tables, and I get something like $30 more back on my taxes to wind up $10,000 further in debt. Just doesn't seem like a hell of a lot of incentive to me.   [roll]

Places I've been on two wheels:

IBA #32735

ducatiz

#5
February 18, 2009, 08:02:59 AM
All sales tax is deductible on your fed forms.  If your state has an income tax, you may deduct EITHER the income tax OR the sales tax you paid in that state.

This has always been the law.

http://www.irs.gov/individuals/article/0,,id=152421,00.html

You can either get receipts for EVERYTHING you buy subject to sales tax and keep them to add up at the end of the year, or you can use the IRS's calculator (above) to estimate and just add in the big ticket items you bought.

Check out my oil filter forensics thread!                     Offended? Click here
"Yelling out of cars, turning your speakers out the window to blast your music onto the street, setting off M-80 firecrackers, firing automatic weapons into the airâ€"these are all well and good. But none of them create a merry atmosphere of insouciance and bonhomie quite like a revving motorcycle.

swampduc

#6
February 18, 2009, 08:07:12 AM
Quote from: ducatizzzz on February 18, 2009, 08:02:59 AM
All sales tax is deductible on your fed forms.  If your state has an income tax, you may deduct EITHER the income tax OR the sales tax you paid in that state.

This has always been the law.

http://www.irs.gov/individuals/article/0,,id=152421,00.html

You can either get receipts for EVERYTHING you buy subject to sales tax and keep them to add up at the end of the year, or you can use the IRS's calculator (above) to estimate and just add in the big ticket items you bought.


Yeah, in my case, Louisiana has a state income tax of 6%, so I deduct that regardless of sales tax. No real incentive to buy another bike here. Only helps if you're getting one anyway.
Respeta mi autoridad!

ducatiz

#7
February 18, 2009, 08:13:41 AM
Quote from: swampduc on February 18, 2009, 08:07:12 AM
Yeah, in my case, Louisiana has a state income tax of 6%, so I deduct that regardless of sales tax. No real incentive to buy another bike here. Only helps if you're getting one anyway.

i wonder if the deduction allowance applies regardless if you claim income vs sales tax?  it might be that they are allowing the deduction of sales tax for a bike purchase even if you claim the state income tax only.  taht would be a nice bing -- and yes, if you are buying a bike already.

and is it a deduction or a credit?
Check out my oil filter forensics thread!                     Offended? Click here
"Yelling out of cars, turning your speakers out the window to blast your music onto the street, setting off M-80 firecrackers, firing automatic weapons into the airâ€"these are all well and good. But none of them create a merry atmosphere of insouciance and bonhomie quite like a revving motorcycle.

NWapex

#8
February 18, 2009, 08:16:21 AM
I just read the quick blurb with some of the language - it appears there is a income limitation as well.  I am guessing that may affect a higher proportion of Ducati purchasers.  It still ruffles my feathers any time I read about these type of limitations....because I work 60-70 hours a week, I should then be penalized for my earnings.  Don't get me started.
My rides:  2009 M696, couple of cages, a few grass eating get-alongs, and some asics.

Bick

#9
February 18, 2009, 08:41:45 AM
Quote from: Raux on February 18, 2009, 07:38:57 AM
WOW that is a BIG bike
:o
"a motorcycle the gross vehicle weight rating of which is not more than 8,500 pounds"

I guess Harley's aren't eligible.  [laugh]

An extra $500-$1000 (effectively $300-$700) back in the pockets of a few people will help a little...  I guess.  [roll]
It's all in the grind, Sizemore. Can't be too fine, can't be too coarse. This, my friend, is a science. I mean you're looking at the guy that believed all the commercials. You know, about the "be all you can be." I made coffee through Desert Storm. I made coffee through Panama while everyone else got to fight, got to be a Ranger.

* A man can never have too much whiskey, too many books, or too much ammunition *

derby

#10
February 18, 2009, 08:43:12 AM
Quote from: NWapex on February 18, 2009, 08:16:21 AM
I just read the quick blurb with some of the language - it appears there is a income limitation as well.  I am guessing that may affect a higher proportion of Ducati purchasers.  It still ruffles my feathers any time I read about these type of limitations....because I work 60-70 hours a week, I should then be penalized for my earnings.  Don't get me started.

the limit is 125k/250k of taxable income for singles/couples. if you're making that much money, i'm sure you're already well-covered on deductions and another $300 probably isn't going to break you.
-- derby

'07 Suz GSX-R750

Retired rides: '05 Duc Monster S4R, '99 Yam YZF-R1, '98 Hon CBR600F3, '97 Suz GSX-R750, '96 Hon CBR600F3, '94 Hon CBR600F2, '91 Hon Hawk GT, '91 Yam YSR-50, '87 Yam YSR-50

click here for info about my avatar

derby

#11
February 18, 2009, 08:47:30 AM
Quote from: Bick on February 18, 2009, 08:41:45 AM

An extra $500-$1000 (effectively $300-$700) back in the pockets of a few people will help a little...  I guess.  [roll]


i view incentive more as an attempt to keep the motorcycle and rv industries afloat rather than a way to line customers' pockets.
-- derby

'07 Suz GSX-R750

Retired rides: '05 Duc Monster S4R, '99 Yam YZF-R1, '98 Hon CBR600F3, '97 Suz GSX-R750, '96 Hon CBR600F3, '94 Hon CBR600F2, '91 Hon Hawk GT, '91 Yam YSR-50, '87 Yam YSR-50

click here for info about my avatar

Raux

#12
February 18, 2009, 11:56:35 AM
i think people are missing the important part here... MORE MONEY FOR MODS  [thumbsup]

ducatiz

#13
February 18, 2009, 12:08:31 PM
Quote from: derby on February 18, 2009, 08:47:30 AM
i view incentive more as an attempt to keep the motorcycle and rv industries afloat rather than a way to line customers' pockets.

good point

unless of course the bike is >8500 GVWR
Check out my oil filter forensics thread!                     Offended? Click here
"Yelling out of cars, turning your speakers out the window to blast your music onto the street, setting off M-80 firecrackers, firing automatic weapons into the airâ€"these are all well and good. But none of them create a merry atmosphere of insouciance and bonhomie quite like a revving motorcycle.

swampduc

#14
February 18, 2009, 02:59:52 PM
Quote from: ducatizzzz on February 18, 2009, 08:13:41 AM
i wonder if the deduction allowance applies regardless if you claim income vs sales tax?  it might be that they are allowing the deduction of sales tax for a bike purchase even if you claim the state income tax only.  taht would be a nice bing -- and yes, if you are buying a bike already.

and is it a deduction or a credit?
According to my accountant, it's a deduction, and you can take it even if you claim state inc. tax already. But yeah, only applies to certain income levels. Not a big deal in terms of the amount anyway.
Respeta mi autoridad!
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