New Auto Deuction Approved

huntindude · Feb 3, 2009

LAST EDITED ON Feb-03-09 AT 06:09PM (MST)[p] Today a plan was passed to make new autos tax deductable, I wish it could have been for American made one only but what are you going to do. it's going to make late model used cars impossible to sell though, that's a down side.

This is going to cost billions in tax revenue, but it should get some cars sold to anyone who still has an income. I can deduct all my pickups anyway like most businesses so it isn't going to be a big deal for struggling businesses. but it might help the average car buyer decide to move, it will be interesting to watch as this is a true test of how tax breaks might effect the economy.

This makes the new Shelby GT 500 my wife wants look more interesting , I always wished I could write a car off.

Yes I know deduction isn't spelled right but I couldn't change it.

TFinalshot · Feb 3, 2009

the best thing they could do if they really wanted to make an impact on the economy, is to suspend, for the remainder of the year, just half of these taxes and use the stimulus to write the checks, at least that way each of use would get some stimulus, as it now is, guys like me who dont spend beyond their means, who dont hold big debt, and who pay all their bills get NOTHING!

* Accounts Receivable Tax
* Building Permit Tax
* Capital Gains Tax
* CDL license Tax
* Cigarette Tax
* Corporate Income Tax
* Court Fines (indirect taxes)
* Deficit spending
* Dog License Tax
* Federal Income Tax
* Federal Unemployment Tax (FUTA)
* Fishing License Tax
* Food License Tax
* Fuel permit tax
* Gasoline Tax
* Hunting License Tax
* Inflation
* Inheritance Tax Interest expense (tax on the money)
* Inventory tax IRS Interest Charges (tax on top of tax)
* IRS Penalties (tax on top of tax)
* Liquor Tax
* Local Income Tax
* Luxury Taxes
* Marriage License Tax
* Medicare Tax
* Property Tax
* Real Estate Tax
* Septic Permit Tax
* Service Charge Taxes
* Social Security Tax
* Road Usage Taxes (Truckers)
* Sales Taxes
* Recreational Vehicle Tax
* Road Toll Booth Taxes
* School Tax
* State Income Tax
* State Unemployment Tax (SUTA)
* Telephone federal excise tax
* Telephone federal universal service fee tax
* Telephone federal, state and local surcharge taxes
* Telephone minimum usage surcharge tax
* Telephone recurring and non-recurring charges tax
* Telephone state and local tax
* Telephone usage charge tax
* Toll Bridge Taxes
* Toll Tunnel Taxes
* Traffic Fines (indirect taxation)
* Trailer Registration Tax
* Utility Taxes
* Vehicle License Registration Tax
* Vehicle Sales Tax
* Watercraft Registration Tax
* Well Permit Tax
* Workers Compensation Tax

eelgrass · Feb 3, 2009

I wonder how the tax deduction will work. The entire price of the car is deductable? I want to know more.

Without knowing the details, I think we have a winner.

Eel

piper · Feb 3, 2009

when no cars are sold they get no tax revenue, so I don't think its going to hurt the treasury that much, is that the one with 540 bhp? sounds fun

huntindude · Feb 3, 2009

LAST EDITED ON Feb-03-09 AT 08:54PM (MST)[p]The plan passed the senate but has to be approved in the final stimulus plan of course, but this is what the republicans have wanted so I see little reason for a hang up.

The plan as it stands now would be for 100% of the purchase price up to $48,500 I think and all the interest to be decuctable. I'm not sure how the depreciation schedule will work, I'm guessing it would be a 3 or 5 year plan but under the circumstances it might be a 1 year write off like we've had for a few years.

I'm sure more details will come as it moves forward.

Piper, yeah that's the one. since I have a '70 Challenger I wanted one of the new ones from the first time I saw it but I'm afraid Chrysler is going to fold so I can't say I'm still as interested. I have a '69 Mach 1 too so the Shelby would be neat along side it and that's the one she likes best. but I'm just talking, I'm not going to spend that kind of money on a car we'd never use, almost everything we do requires a pickup anyway.

1911 · Feb 3, 2009

BIRMINGHAM, Ala. (AP) - An Alabama congressman has introduced a
bill that would allow new car buyers to deduct up to $7,500 on
their federal income taxes.
U.S. Rep. Mike Rogers of Saks said his legislation would make the tax break on new car purchases part of an economic stimulus package to be considered by Congress.
Rogers says the deduction would apply to people who buy new cars
for personal use and not for business purposes. He says the $7,500
deduction would be available in the first three months after the
proposal became law. The deduction would drop to $5,000 in the
second three-month period and then to $2,500 for the last three
months.
Rogers says he believes the deduction would encourage people to
buy new cars and create more orders for car manufacturers.

huntindude · Feb 3, 2009

The one that passed the senate today is reported to be as I stated above, this must have been what started it.

1911 · Feb 4, 2009

Has anyone seen the ink on paper on this one? The only thing I can find aside from what I previously posted is not as good as the 7,500 mentioned in that article. I was only able to find some reference to $1,500 savings on the purchase of a $25,000 new car.

huntindude · Feb 4, 2009

I don't know how to post a link, go to Yahoo.com or Timesunion.com and search auto deduction both those had it when I searched.

NeMont · Feb 4, 2009

Nothing has passed out of the Senate. There was an amendment to the Stimulus Bill that was approved that was written by Sen. Barbara Mikulski (D) Md.

From the Senate website this is the example used to show the impact on the purchase of a new vehicle.
http://mikulski.senate.gov/_pdfs/Press/autoownershiptaxamendment.pdf

There is not a depreciation schedule All the amendment does is make the sales tax and interest paid on the vehicle tax deductible on your Federal Form.

If you are hoping to fully depreciate your vehicle like you do with your ranch pickups you are going to be hugely disappointed. That assumes that this amendment makes it through conference committee.

Nemont

huntindude · Feb 4, 2009

LAST EDITED ON Feb-04-09 AT 06:25PM (MST)[p]This is the first I've seen of the details, if this is all it amounts to it's a joke. why would they call it a federal income tax deduction it's nothing of the sort? all it amounts to is a exemption on a few minor taxes for some people.

They may as well cut GM and Chrysler the check because this isn't going to help anything, and it will help the japs more than anyone else since they sell the most cars ayway. dumb dumb dumb idea. I guess I see nothing but pickups in my future.