Sales Tax write-off

[caverman]

Does anyone know if the Sales Tax write-off is only for 2009? If my car isn't delivered by year end am I out of luck on the write off?

[AnnaBear@SpartaChevy]

Correct...ends 12-31-09.

[jimsss]

Also tax credit did not start January 1, 2009. It was around the middle of February before the bill was passed and did not go retro.

[SirBrad]

Are there any more threads on this where I can find more information?

I had no idea about this until 2 weeks ago and one of the guys at our meetup mentioned this.

[rolnslo]

Originally Posted by caverman

Does anyone know if the Sales Tax write-off is only for 2009? If my car isn't delivered by year end am I out of luck on the write off?

You live in TX. It doesn't matter when you get your car, you can still write off the sales tax on your Federal tax return.

We get kind of screwed on this deduction because we already have it. People that live in states that collect state income tax are able to write that off every year on their Federal taxes. If you live in a state, like TX or WA, that does not have a state income tax, there was a change to the tax code a few years ago that allowed us to write off a standard amount for sales tax paid instead. You could either track the actual amount you spent on sales tax all year or just take the standard deduction based on your income. An added bonus was that you could also add any sales taxes paid for big-ticket items (vehicles, boats, home improvements supplies) to the standard deduction.

Now, everyone can write off the sales tax for vehicles this year, on top your state income tax deduction. If you live in a no state income tax state, you get nothing extra.

[rolnslo]

Originally Posted by SirBrad

Are there any more threads on this where I can find more information?

I had no idea about this until 2 weeks ago and one of the guys at our meetup mentioned this.

http://www.irs.gov/newsroom/article/...204519,00.html

[caverman]

Originally Posted by rolnslo

You live in TX. It doesn't matter when you get your car, you can still write off the sales tax on your Federal tax return.

We get kind of screwed on this deduction because we already have it. People that live in states that collect state income tax are able to write that off every year on their Federal taxes. If you live in a state, like TX or WA, that does not have a state income tax, there was a change to the tax code a few years ago that allowed us to write off a standard amount for sales tax paid instead. You could either track the actual amount you spent on sales tax all year or just take the standard deduction based on your income. An added bonus was that you could also add any sales taxes paid for big-ticket items (vehicles, boats, home improvements supplies) to the standard deduction.

Now, everyone can write off the sales tax for vehicles this year, on top your state income tax deduction. If you live in a no state income tax state, you get nothing extra.

Do you know if this will be the same for next year. I can take the standard sales tax deduction and then add the big ticket item to it?

[nashstat]

Basically if you bought a new car between Feb 16 and Dec 31 2009, you will qualify for it. I have no clue how it works in TX or WA, but for most of the country, you can substract the sales tax out of your taxable income so hopefully it will get you in a lower federal tax bracket.

BTW the 12/31/09 deadline is for the invoice... as long as you paid for the car before 12/31/2009 u are good, so in case your car is coming early Jan, you can ask your dealer to invoice it before the year ends and then just take delivery as soon as it comes in.