New Car Tax Credit

[solo40oz]

Originally Posted by Darth_Emma

Anyone know if this tax credit will be extended into next year? I won't be getting my car until early January. Argh!

Been looking for that info for a while now...I suspect we'll find out next year if they decide to extend....

[nashstat]

Originally Posted by solo40oz

Been looking for that info for a while now...I suspect we'll find out next year if they decide to extend....

Not to burst your bubble, but there was a site that was talking about credits that will likely extend in to next year and the housing/car incentives would most probably go away while the education incentives would increase!

[Cmaro214]

will the dealerships be aware of this and bring it to the table or will we have to bring some proof of it to convince them it applies.

[pk1225]

Originally Posted by Snuggles

Not trying to hijack, but have a tax question...

I have been using TurboTAX for the last 3 years (ever since I moved to TX) and wonder if anyone prefers TurboTAX vs. H&R Block vs. a CPA or other accountant?

I DO itemize each year for the fact that I own my own home, vehicle and have other small business deductions and property tax and student loan deductions.

Reason I ask this question is: sometimes I just wonder if I went with a CPA or other accountant, would I possibly be getting more money back? I am single with "0" dependents so I havent had to pay anything back, always get $$ back.

Thanks for the help!

Two years ago my accountant keep putting off doing my return, finally I yanked the paperwork back from him, got on TurboTax, and did it myself.

What an idiot, I'll never use him again. TurboTax makes it easy, finds EVERY SINGLE POSSIBLE deduction, and it gets done when I want it. And my taxes are fairly complicated - small business taxes forces me to find and claim every deduction I can.

Tax deduction for my Camaro --> Yeah bud!

[Sean_W]

Originally Posted by JuicedSS

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).

OK, this sounds good if you owe, but if you get a refund? Will you notice a change, or is it only useful if you owe?

[IROCanSS]

Originally Posted by Sean_W

OK, this sounds good if you owe, but if you get a refund? Will you notice a change, or is it only useful if you owe?

It is a tax credit, meaning it comes off your taxable income. You will see the benefit either way. you'd either owe less or get more of a refund.

[1DERZ SS]

With our governments spending I would highly doubt it....

Originally Posted by solo40oz

Been looking for that info for a while now...I suspect we'll find out next year if they decide to extend....

[SilverIce1]

Please understand that this is a tax deduction. It is not a tax credit.

Basically this deduction lowers your the amount of income subject to income taxes. Depending on you marginal tax rate, the amount of benefit from a reduction in income taxes due will vary.

[Hanzo]

To be clear it is a deduction and not a credit. But hey, it's better than nothing.

[speedtrip]

I asked this in a similar, but dying thread, so no one responded...but am curious if it's best, for folks that live in property tax states (Missouri) to just buy in early Jan than before Dec 31st. If purchased in Jan 2010, you would not need to pay property tax until Dec 2011 (almost 2 years), but if you purchase in Dec 2009, you'll get this stimulus credit (~$250), but you'll also have to pay property tax in Dec 2010 (~$600). In both cases, of course, you're still stuck paying the sales tax.

So, what makes more sense?

[Deebo]

Damn...feels kind'a like when I found out there was no Santa Clause. My cpa cousin said it was a CREDIT, so, of course, I took it for granted and I had the CREDIT in mind when I bought those new vehicles this year. Every little bit helps I guess...

[sfgiantsfan9]

It says you must purchase before the end of the year. I ordered mine in mid november but doubt I'll take delivery of it this year. Will I still qualify for the tax deduction?

[Verio]

Originally Posted by sfgiantsfan9

It says you must purchase before the end of the year. I ordered mine in mid november but doubt I'll take delivery of it this year. Will I still qualify for the tax deduction?

Use some common sense here. If you're not buying the vehicle until the next year, why would you think you were entitled to the deduction? That would be essentially claiming a deduction for nothing. You could simply cancel your order next year, and be on your way.

[sfgiantsfan9]

Originally Posted by Verio

Use some common sense here. If you're not buying the vehicle until the next year, why would you think you were entitled to the deduction? That would be essentially claiming a deduction for nothing. You could simply cancel your order next year, and be on your way.

I ordered the car through a fleet service. I own a dairy and am eligible to order company vehicles through the fleet service at a much cheaper cost. Using this service you pay for the car at the time of ordering so it isn't like your normal transaction at a dealership. So technically I payed for the car in 2009. That is why I am asking.