Quote:
Originally Posted by elpatofeo
...I'm not a tax expert so I'm asking this: the deduction means we get reimbursed the tax we paid on the vehicle? all of it or just part of it?
I will definitely be doing this regardless...
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A tax credit would mean you would get a $ for $ refund i.e. if you paid $3000 in sales tax, you would have to pay $3000 less in taxes. A deduction means that your taxable income is decreased by the amount of the deduction i.e. if you paid 3,000 in sales tax, your taxable income would be reduced by 3,000. So, if you were in the 25% tax bracket, you would actually be saving $750 (25% of $3,000).
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2010 Camaro 2SS/RS M6 Black on Black
22" Vossen CV1 Wheels, Roto-Fab CAI, Dynatech 1 7/8" Long Tubes w/ High Flow Cats, Magnaflow Tru-X Pipe,
Barton Short Throw Shifter, Vector Motorsports Tune, Ground Effects, MPD1 Spoiler