Buy a New Car at Internet Pricing!
Bonus points if you know the dollar amounts on license and fees as well. Thanks!
Here you go:
http://www.dmv-department-of-motor-vehicles.com/MN_Minnesota_dmv_department_of_motor_vehicles.htm
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.
How do you go about applying the new tax break for brand new car buyers this year? Is it applied automatically?
No I mean the tax break they are suppose to give you from the sales tax of the vehicle. Does anyone know about that? Thanks for your resposes.
What tax break?
You mean the "Cash for Clunkers"?
The dealer will take care of all that. If your clunker qualifies they will apply $3500 or $4500 as downpayment. The dealer receives the money from the government electronically.
I have qualified for a loan and am purchasing a new Audi this week for $34,000 after trade in and rebates; I am a DEPENDENT making about $7,000 gross in 2009. In indiana sales tax is 7 percent.
Thanks for the comment
I am 20 years old and graduating next year from a good school. Already have a job lined up from my internship. My mother co-signed the loan.
You can deduct sales tax of the car. See here for all of the details:
http://www.irs.gov/newsroom/article/0,,id=204519,00.html
I concur with Net Advisor’s opinion otherwise.
I was just curious if anyone knew where the best deals for cars are?
not sure but i know new hampshire has no sales tax even on cars, which tend to be pretty big sales so no tax is awesome!
New Mexico resident for 7 years and want to combine purchasing a new car with visiting friends in CA. NM sales tax rate is 3% vs. CA 8.75% Thank you.
No problem. All the dealer has to do is input your home address with zip code and the software will charge sales tax for your county, not for Berkeley Ca.
You can get a one way pass so you can register the car in NM instead of CA. Then you’ll only have to pay your state’s registration fees. But a one way pass means you have to drive straight back home. It’s not good for driving around CA while you’re visiting.
So you can either wait until you’re ready to leave to buy the car. Or buy it while you’re visiting and pay CA reg fees. Once you get home, you can re-register the car in your state and NM will give you a refund of the fees you paid in CA.
what is the sales tax rate for buying a new car or used car in california?
It varies by city.
You cannot buy a car in another city with a lower tax rate to avoid the higher rate in your city.
The car dealer will ask you where you live and you still have to pay the full tax for your city. I know, it sucks. But many cities are going broke so they want their fair share.
Anyway, see:
http://www.boe.ca.gov/cgi-bin/rates.cgi
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The tax break on new cars purchased between 2-16-09 and 1-1-10 is good but does it reduce the taxable income or the tax owed?.
It reduces your income by the sales tax paid.
Helen,EA in PA
My husband and I are in the market for a new car (as in an 06) and we’ve been told that our credit is horrible and we would need a huge down payment and a co-signer. I know of about 5 different people who bought new cars and their credit is worse than ours and they managed to get no down payment and didn’t need a co-signer. How does that work.
I’m not sure how you know how their credit compares to yours, but that’s a whole other story.
Most ‘bad credit’ car loans wind up costing you a fortune – either in very high interest rates or high car price. My best advice is to fix your credit, then buy a new car.
While your credit is under repair, keep finding $500 cars to get you through. Even if one only lasts 6 months, you’re 5 car payments ahead, see?
Also, a downpayment should be seriously considered. Even if your trade is the downpayment, your monthlies are that much lower. Pay the sales tax up front as well. Why pay interest on tax? That makes no sense. If you owe more than the trade is worth, keep it! Trade when the value exceeds the remaining payments!
If you lease a new car before the end of 2009, will that sales tax credit that’s on all new vehicles still apply?
There’s no need to lecture me about the benefits of buying vs. leasing. It’s just a question about the tax credit, thanks.
No. The credit is only for the taxes on new cars for purchase, not lease.
