just passed, tax break for new car buyers
#1
02-04-2009, 06:57 AM
just passed, tax break for new car buyers
just hours ago.........
In a victory for auto manufacturers and dealers, Sen. Barbara Mikulski, D-Md., won a 71-26 vote to allow most car buyers to claim an income tax deduction for sales taxes paid on new autos and interest payments on car loans. The break would cost $11 billion over the coming decade but could mean savings of $1,500 on a $25,000 car.
In an interview on CNN, Obama signaled a willingness to drop items that "may not really stimulate the economy right now." He also signaled he'll try to remove "buy American" provisions in the legislation to avoid a possible trade war.
the "buy american" is of concern, but looks like the crookaticians in Washington are starting to use their brains.
No word yet on if this is retro-active, those of us who bought cars a few weeks ago could be screwed.
In a victory for auto manufacturers and dealers, Sen. Barbara Mikulski, D-Md., won a 71-26 vote to allow most car buyers to claim an income tax deduction for sales taxes paid on new autos and interest payments on car loans. The break would cost $11 billion over the coming decade but could mean savings of $1,500 on a $25,000 car.
In an interview on CNN, Obama signaled a willingness to drop items that "may not really stimulate the economy right now." He also signaled he'll try to remove "buy American" provisions in the legislation to avoid a possible trade war.
No word yet on if this is retro-active, those of us who bought cars a few weeks ago could be screwed.
Last edited by Tork; 02-04-2009 at 07:00 AM.
#4
02-04-2009, 10:53 AM
Doesn't this mean if you bought a new car in 2009 you should get the tax break for the 2009 tax season (Taxes due in April 2010) since this was passed in 09?
So as long as you bought a car in 2009 you should be able to use this right?
I would hope so....
Just found this....
"It would apply to the first $49,500 in the price of a new car purchased between last Nov. 12 and Dec. 31, 2009"
http://news.yahoo.com/s/ap/20090203/...gress_stimulus
So as long as you bought a car in 2009 you should be able to use this right?
I would hope so....
Just found this....
"It would apply to the first $49,500 in the price of a new car purchased between last Nov. 12 and Dec. 31, 2009"
http://news.yahoo.com/s/ap/20090203/...gress_stimulus
Last edited by Committobefit08; 02-04-2009 at 10:57 AM.
#6
02-04-2009, 11:34 AM
Doesn't this mean if you bought a new car in 2009 you should get the tax break for the 2009 tax season (Taxes due in April 2010) since this was passed in 09?
So as long as you bought a car in 2009 you should be able to use this right?
I would hope so....
Just found this....
"It would apply to the first $49,500 in the price of a new car purchased between last Nov. 12 and Dec. 31, 2009"
Senate votes to give a tax break to new car buyers - Yahoo! News
So as long as you bought a car in 2009 you should be able to use this right?
I would hope so....
Just found this....
"It would apply to the first $49,500 in the price of a new car purchased between last Nov. 12 and Dec. 31, 2009"
Senate votes to give a tax break to new car buyers - Yahoo! News
#8
02-04-2009, 11:57 AM
crap... bought it too early... and if this "buy american" thingy stands Fit is not made in America, none of us will benefit.
#9
02-04-2009, 12:09 PM
it's about time...
finally some legislation that will actually stimulate car sales... and i can't imagine how they could possibly exclude foreign cars -- so i expect that to be amended.
here in Michigan we also get hammered when we trade-in cars, since you are charged full sales tax on the purchase of the new car you're getting, with no credit from the value of the traded vehicle.
Really stupid, and something our state legislature needs to fix to promote more car sales...
here in Michigan we also get hammered when we trade-in cars, since you are charged full sales tax on the purchase of the new car you're getting, with no credit from the value of the traded vehicle.
Really stupid, and something our state legislature needs to fix to promote more car sales...
Last edited by Bigfoot; 02-04-2009 at 12:12 PM. Reason: added content...
#10
02-04-2009, 12:12 PM
Yeah, I bought mine on November 8th. The 12th seems to be pretty random...why not make is November 1st?
#11
02-04-2009, 12:58 PM
Instead of tax cuts and percentages, Congress should just give those who buy economical gas sippers like us a fatty check. The check can be written to us from all of those suburban, tahoe, expedition, escalade crowd since they gots the money right?
#13
02-04-2009, 01:26 PM
As far as I can see, the tax break applies to all of us, and doesn't require buying a U.S. branded car. It's a shame there is no way to spend $49,500 on a Fit. Still, I get yet another opportunity to suckle at the Federal Government teat - a few hundred dollars back in my pocket. Hurray.
#15
02-04-2009, 02:06 PM
Well, I guess I qualify then. (Bought my '09 Fit December 13th)
This is for TAX YEAR 2009, which is what we file next year.
And the tax break applies to everyone, whether they itemize or not (no, you don't have to be a homeowner).
IMHO, the Fit should qualify for evironmental tax credits as well because it is a low-emissions fuel-efficient vehicle.
This is for TAX YEAR 2009, which is what we file next year.
And the tax break applies to everyone, whether they itemize or not (no, you don't have to be a homeowner).
IMHO, the Fit should qualify for evironmental tax credits as well because it is a low-emissions fuel-efficient vehicle.
Last edited by jrlnc; 02-04-2009 at 02:09 PM.
#20
02-04-2009, 04:52 PM
Exactly. Depending on the sales tax rate in your area, how much interest you pay on your loan in 2009 (depends on amount financed and rate), and your tax bracket, the savings will vary. You get to take a deduction for the sales tax + interest, so the average middle-class guy will save 25% of that amount in federal taxes.