The IRS Deductions Blog

Archive for the ‘Car Tax Deductions’ Category

Question: Auto Deductions – New Vehicle Sales Tax QUESTION?

If you purchased a new vehicle between the dates of 2/17/09 and 12/31/09, you may be able to deduct the amount of sales tax and certain fees paid. The deduction is limited to the first $49,500.00 of the purchase price of the vehicle. The deduction begins to phase out for the taxpayers with a modified Adjust Gross Income of more than $125,000 ($250,000 for Married Filing Joint). This deduction is available to you even if you don’t itemize your deductions.

****Does that mean just getting a car and still paying monthly payments or must you have fully paid and owned the car??

Answer: It means that you bought the car in 2009 and paid the sales tax in 2010. Sounds unlikely.

Items on Amazon Right Now for Income Tax Deduction Auto Sales Tax:

Mears Grp PLC – Final Results

Mears Grp PLC – Final Results

Bookkeeping for the Self Employed Tracks Income & Expenses Automatically and Free

Question: I don’t Owe Taxes- Are Deductions for Student Loan Interest & Car Donation worthwhile?

OK the short of the question is that I made way below the cutoff in 2007 to owe any taxes on my return this year (About $11,000).

However, I have a $750.00 Student Loan Deduction and a $2,000.00 Auto Donation Deduction I can claim.

Further, I moved in 2007 for a job, and spend about $400 on the truck and boxes etc.

Is it even worth to declare these deductions? I mean it won’t “deduct” from any taxes, because I am not paying any, right?

Those deductions won’t inflate any return I get, will it? I couldn’t imagine it would, knowing how the Govt. likes to stick it to we people of the great unwashed masses.

So should I use the deductions? Will it contribute anything meaningful to my return? or is it just more paperwork for little, if anything, in return?

Answer: 1. Contrary to what rtfm wrote, moving expenses are an adjustment, not an itemized deduction, and may be claimed IN ADDITION TO the standard deduction.
2. Judy’s answer should say $11,000, not $11,00, but otherwise seems right.

Items on Amazon Right Now for Tax Deduction Auto Loan Interest:

10 more tax tips to save you money

Every year millions of Canadians pay more tax then they should. Here are 10 more ways to make sure the tax system works to your advantage.

1099 Mortgage Forgiveness Tax Liability Insolvency

Question: What does it mean? “The only way to reduce the cost of protection is to raise the deductible?

I asked a car insurance agent to reduce the montly premium for my car insurance. He said “The only way to reduce the cost of protection is to raise the deductible” When comprehensive and PIP are 500 the monthly premium is high. When they are 750 the premium is low.
When they are 1000 the premium is still low.

I couldnt understand what exactly that means?. I am new to the car insurance issues.

Answer: The deductible is the amount you have to pay out of pocket for any claim. For instance if you hit a tree and the repair work is$ 2000.00,with a 500 deductable the check you recieve would only be 1500. So the higher the amount you agree to pay per accident yourself the less the insurance co is on the line for.

Items on Amazon Right Now for Car Insurance Deductible Comprehensive:

7 silly ways to waste money on auto insurance

Are you wasting money on auto insurance? There’s a good chance the answer is “yes” – not because you are a bad driver or a high risk, but because you overlook some of the best ways to save. 

Comparing Comprehensive Car Insurance

Question: Tax deduction for mileage or vehicle cost?

Because of the current economy I have been forced to take a job where I now commute 500 miles a week, this is an office job I don’t leave the office to make sales calls or anything. My old car was a Lincoln LS which averaged about 19mpg on the highway so I was forced to sell and buy a used(I find buying a new car pointless) 2006 VWJetta diesel.

I was wondering if there is any tax deduction that I can utilize? Loan deduction on vehicle, mileage, anything??

Answer: Sorry, but no. No mileage deduction for commuting, and no other deduction or credit for buying a used car even if it is a diesel.

Items on Amazon Right Now for Sales Tax Vehicle Deduction:

The Savvy Consumer: Late tax law changes a setback for early filers

The IRS won’t take some returns till later.

Gerri Harrison on the Binghamton Business Connection

Question: New Car Credit Questions regarding taxes.?

When I was trying to file my taxes last night, I put in the deduction for the right off on the sales tax for buying a new car last year. I noticed that when I put the deduction in, it only gave me $200 extra back for sales taxes paid of 2500. I was expecting to get the full credit back. can anyone explain if I’m doing something wrong? Should I receive the total sales tax back or not? Thank you all for your help! = )

Answer: It’s not a credit, it’s a deductions. At best, you only get your tax rate times the deduction. You are in the 10% tax bracket, so you only got $200.

Items on Amazon Right Now for Tax Deduction New Car Sales Tax:

Bolt into an electric car

From an unassuming office in South Melbourne, Singaporean-Australian businessman William Tien plans to help write the next chapter of automotive history.

McGeorge Tax Story_Track1.asf