D_J Posted February 13, 2009 Share Posted February 13, 2009 Apparently there a provision in the new stimulus bill that will allow a temporary deduction for interest and tax paid on new cars purchased in 2009. "Temporary deduction for car buyers: The bill would let those who buy a car in 2009 deduct the interest they pay on their car loan as well as the sales tax charged in the purchase. The full deduction would be available to those earning less than $125,000 ($250,000 for joint filers). Estimated cost: $11 billion." http://money.cnn.com/2009/02/11/news/economy/stimulus_individuals/index.htm?postversion=2009021122?cnn=yes Link to comment Share on other sites More sharing options...
Bbc84 Posted February 13, 2009 Share Posted February 13, 2009 interesting Link to comment Share on other sites More sharing options...
pharmer Posted February 13, 2009 Share Posted February 13, 2009 would that be for the life of the loan? or a one time deduction in your 2010 filings? sounds like decent deal Link to comment Share on other sites More sharing options...
05LegacyGTLimited Posted February 13, 2009 Share Posted February 13, 2009 DAMN! I should have waited 1 month! Link to comment Share on other sites More sharing options...
TPLGT Posted February 13, 2009 Share Posted February 13, 2009 I just bot a new 'used' car...in states where there is no state income tax, we can deduct any and all sales tax so that is already the case for us...the laon int. would be great. BTW, a $15,000 tax credit for home buyers already passed. THAT is a good deal! Rehab is for quitters. Link to comment Share on other sites More sharing options...
JoeFromPA Posted February 13, 2009 Share Posted February 13, 2009 I'm 98% certain that provision (car deduction and incentive) didn't make it at this time. Link to comment Share on other sites More sharing options...
gf2020 Posted February 13, 2009 Share Posted February 13, 2009 I'm 98% certain that provision (car deduction and incentive) didn't make it at this time. You can be 100% sure. The car loan interest provision and the $15K first time home buyer credit did not get included. Link to comment Share on other sites More sharing options...
theflystyle Posted February 13, 2009 Share Posted February 13, 2009 another link Link to comment Share on other sites More sharing options...
PeterJMC Posted February 13, 2009 Share Posted February 13, 2009 Wow... should I sell my '06 and get an '09??? Nah.... Definitely a good deal though! Link to comment Share on other sites More sharing options...
chenc544 Posted February 13, 2009 Share Posted February 13, 2009 You can be 100% sure. The car loan interest provision and the $15K first time home buyer credit did not get included. This CNN article updated this morning says you can deduct the sales tax but says nothing about the interest. I think I like this better than letting people deduct interest. http://money.cnn.com/2009/02/13/news/economy/stimulus_individuals/index.htm Link to comment Share on other sites More sharing options...
D_J Posted February 13, 2009 Author Share Posted February 13, 2009 "Temporary deduction for car buyers: The bill would let those who buy a new car, light vehicle, recreational vehicle or motorcycle in 2009 deduct state and local sales taxes as well as any excise tax charged in the purchase. The deduction would be available to those earning less than $125,000 ($250,000 for joint filers). It will be an above-the-line deduction, meaning even taxpayers who don't itemize may take it in addition to the standard deduction. Estimated cost: $1.7 billion." Going from 11 to 1.7 billion. Not nearly as good of a deal but better than nothing. Sounds complicated. Do you basically look at the contract to find-out how you paid in taxes then divide by the number of years ? Link to comment Share on other sites More sharing options...
chenc544 Posted February 13, 2009 Share Posted February 13, 2009 Going from 11 to 1.7 billion. Not nearly as good of a deal but better than nothing. Sounds complicated. Do you basically look at the contract to find-out how you paid in taxes then divide by the number of years ? Why would you have to divide by the number of years? The sales tax is paid at the time of purchase regardless of the term of the loan or if you have a loan. Sales tax you paid is based on where you live so you can probably find it on your county's website. Take that percentage and multiply it by what you paid for the car and that's the sales tax. Since it's a deduction not a tax credit, how much you will actually save will be based on your income tax bracket. Link to comment Share on other sites More sharing options...
JoeFromPA Posted February 13, 2009 Share Posted February 13, 2009 This is why this whole bill is a bunch of shit. No one knows what the hell is in it, and 200 pages have been added in the last 24-48 hours. Oh yeah, and they just posted the bill in a PDF image format to make searching much harder (instead of converting a raw word file direclty into a PDF, which makes searching easier). And they broke their promise to put all bills on the website for 48 hours prior to requesting a vote on that bill. Grrrr. Link to comment Share on other sites More sharing options...
chenc544 Posted February 13, 2009 Share Posted February 13, 2009 TAnd they broke their promise to put all bills on the website for 48 hours prior to requesting a vote on that bill. I thought Obama's campaign promise was 5 days... http://www.politifact.com/truth-o-meter/promises/rulings/promise-broken/ Link to comment Share on other sites More sharing options...
JoeFromPA Posted February 13, 2009 Share Posted February 13, 2009 Yes, but Pelosi's was 48 hours. Link to comment Share on other sites More sharing options...
D_J Posted February 13, 2009 Author Share Posted February 13, 2009 another link Everyone including myself overlooked his link...now it seems the fine print has been ironed-out. It still seems complicated on the details but this seems to be the gist of it: "...It's estimated this will save the average family $1,500 towards the purchase of a new car costing $25,000. How does it work? The Auto Assistance Ownership Amendment makes interest payments on loans and state sales/excise car taxes deductable for any new car sold between November 12, 2008 and December 31, 2009..." I assume this is for purchases only and not leases. Link to comment Share on other sites More sharing options...
chenc544 Posted February 13, 2009 Share Posted February 13, 2009 Everyone including myself overlooked his link...now it seems the fine print has been ironed-out. It still seems complicated on the details but this seems to be the gist of it: "...It's estimated this will save the average family $1,500 towards the purchase of a new car costing $25,000. How does it work? The Auto Assistance Ownership Amendment makes interest payments on loans and state sales/excise car taxes deductable for any new car sold between November 12, 2008 and December 31, 2009..." I assume this is for purchases only and not leases. I saw the article and noted that it was posted on Feb 4th. That article was written long before the vote today, that's why I posted the CNN link. I believe the CNN article is the most up to date and what actually went into the bill. Link to comment Share on other sites More sharing options...
chenc544 Posted February 13, 2009 Share Posted February 13, 2009 Yes, but Pelosi's was 48 hours. I guess so much for the new era of openness... Link to comment Share on other sites More sharing options...
D_J Posted February 13, 2009 Author Share Posted February 13, 2009 My bad...didn't see the article was from Feb. 4th. Totally useless now. Link to comment Share on other sites More sharing options...
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