Discussion:09 New Vehicle Sales Tax Deduction
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Discussion Forum Index --> Basic Tax Questions --> 09 New Vehicle Sales Tax Deduction
Discussion Forum Index --> Tax Questions --> 09 New Vehicle Sales Tax Deduction
For Lease
| 22 April 2009 | |
| Looking for information if sales tax paid toward a leased vehicle would qualify for this non schedule A deduction? | |
| 23 April 2009 | |
| Section 1008 of the American Recovery and Reinvestment Act clearly identifies the deduction for purchased vehicles. There is no mention of a leased vehicle. Reading the law literally I would argue that leased vehicles are excluded. Furthermore, I think the intent of the law was to encourage vehicle purchases not leases, so I don't think the intent was even there to cover leased vehicles. | |
| 23 April 2009 | |
| I believe the credit is only for "new" vehicles purchased. This is to put used car salesman who sale low mileage vehicles out of business. | |
| 23 April 2009 | |
| The used vehicle exclusion clause undoubtedly exemplifes the intent of the tax deduction here is to sell new cars. Often however the spirt and the letter can get switched around. Further could argue that leasing is helping on the production end. | |
| 23 April 2009 | |
| From TTB
Motor vehicles include cars, motorcycles, motor homes, recreational vehicles, SUVs, trucks, vans, off-road vehicles, and leased motor vehicles. 2) Instead of actual taxes paid, use the amount from the optional state sales tax tables in Tab 16. Add to this amount local general sales taxes if the taxpayer’s locality imposes a general sales tax, plus taxes paid on motor vehicles (described above), aircraft, boats, homes (including mobile and prefabricated homes), or materials to build a home (Notice 2005-31). For motor vehicles only, if the tax rate is more than the general sales tax rate, deduct only the portion of the tax that would have been imposed at the general sales tax rate. For aircraft, boats, and homes, the tax is deductible only if it was imposed at the general sales tax rate. I don't see anything that says it has to be a new vehicle or cannot be a leased vehicle...does anyone have a cite that specifies it further? | |
| 23 April 2009 | |
| http://www.irs.gov/newsroom/article/0,,id=206633,00.html | |
Death&Taxes (talk|edits) said: | 23 April 2009 |
| RIA puts it more delicately, defining a qualified vehicle as one for which 'the original use begins with the taxpayer.' Section 164(b)(6)(D)(i)(1) and the original use of which commences with the taxpayer. | |
| 24 April 2009 | |
| I stand corrected, thank you, the TTB is not specific enough with the rule. New vehicles only and the bottom line is it cannot be taken on an 08 return. | |
Death&Taxes (talk|edits) said: | 24 April 2009 |
| Would a demonstrator be considered 'new' or was its original use with the dealer? | |
| 24 April 2009 | |
| A demo would be considered new because it was never titled. Once it has been titled it is no longer considered new. | |
