is sale tax on a new car deductible on federal income taxes?

Wednesday, February 17th, 2010


Maybe.

If you itemize, you are given the choice of deducting the state sales tax that you paid throughout the year or the state income tax you paid but not both.

The IRS has developed tables to calculate what the average person spends in each state on sales tax. Take this number, and how much tax you paid on the car and if that number is higher than your state income tax AND you itemize, you will get a deduction.

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Recovery: Vehicle Tax Deduction-Claim It January 2010

Sunday, January 24th, 2010

If you bought a new car in 2009, you may be eligible for an additional deduction when you file your taxes.

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Recovery: Vehicle Tax Deduction – June 09

Wednesday, January 20th, 2010

Have your eye on a new car? Be sure to check out this video from the IRS to find out how buying a new vehicle may actually put some more mileage in your tax return next year.

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Can I deduct a new car purchase for my business?

Tuesday, November 10th, 2009

My wife and I purchased a new car in 2006. The car is used for both personal use, and for use in my business. Can I deduct anything on my taxes in regards to the purchase of this car? Would I be listing the car as a business asset?

Yes, you can. However, the IRS only allows you to take pieces over time. You’ll need to look into the instructions for depreciation or form 4562.

Most cars are subject to the luxury auto limits meaning there is a cap as to how much you can deduct as depreciation expense each year. For someone that has never dealt with this before, it can seem very complicated. Now might be a good time to hire a CPA to handle your return. Part of the cost (for the CPA) is also deductible as a business expense!

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Cheap Repo and Seized Cars for Sale – Government Police Car Auctions

Monday, November 9th, 2009

If you think you can save the most money by buying cars from second bank car garage sales, think again. There are a lot of available ways to buy cheap cars that are still in relatively good condition.

Today, there are a lot of web sites which could give you the most affordable and lowest prices of automobiles, some of them are almost new and some car models which you could even buy at 20 to 60% price off compared to its current market price. What we are talking about are those cheap repo and seized cars for sale.

What are these cheap repo and seized cars for sale? If you are not yet familiar with it, “repo” means repossessed by the government, either by the Police, or some government institutions such as FBI, IRS, DEA, US Treasury, etc.

Now, do you get the idea? These are seized cars from criminals, tax law evaders, or any one who erred the law. (You don’t need to worry and be afraid about the car’s condition and past owners. These cars have not been used by murderers.) That is why these cars have been known to be of high quality, branded models which would even contain lesser or even no damage at all.

Since it cost the government money and space to store and maintain these repossessed vehicles, they are more than willing to sell it at cheap prices to get rid of it since they always have more repo and seized cars coming in.

However, you do have to note that cars sold at government auto auctions are sold as is. So you need to know how to inspect a car before buying. If you are not familiar, it would be best to bring along someone who can determine how much repair is needed before it can be driven.

Ricky Lim
http://www.articlesbase.com/cars-articles/cheap-repo-and-seized-cars-for-sale-government-police-car-auctions-691612.html

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