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Wondering if anyone has heard about a tax credit of around $8,000 for buying any GM vehicle in 2009, not just a hybrid. My brother-in-law told me that this was going to become part of the stimulus program in order to help out the big 3 this year. Thanks for any info.
 

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I heard rumblings of another stimulus plan a couple of months ago that could possibly include deduction of auto loan interest as well, but for now mike's link above sums it up.
 

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The auto loan interest deduction was in the initial Senate bill, but was killed in the final version passed by the House.
 

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mtnbound said:
The auto loan interest deduction was in the initial Senate bill, but was killed in the final version passed by the House.
I remember that, but also read where Pelosi thought that another stimulus bill may be needed later in the year that would include it. But it's probably dead. It wouldn't be a benefit for those getting 0% interest loans anyway. ;)
 

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Really? I was thinking it's the most concise verbage I've ever seen in any government publication. Seems very straightforward and in plain-english vs. gobs and gobs of legal jargon. And you're correct, it is not GM specific, it applies to new auto purchases, regardless of brand.

09Enclave said:
??? That says absolutly nothing, in terms of a GM vehicle, and doesn't mention how much. Just a bunch of legal talk, to take up space on that website.
 

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I think the $8K is only for first time home buyers, not vehicles.

At first I thought predictable... I buy two new US brand vehicles in 2008 and miss out on a tax credit I really could have used. :banghead:

Then, I read the link. It is a sales tax deduction up to a certain amount for those that make under a certain amount (ah, the great sport of jumping through hoops to qualify for a tax deduction :mad:). I think we were able to claim large purchase sales tax last year, so I'm not sure what is new about this.

The deduction is limited to the state and local sales and excise taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle.

The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.


BTW, this is nowhere near $8K. Even at 8% sales tax, a $49K vehicle amounts to $3,920.

Par for the course for our tax industry.

09Enclave said:
Just a bunch of legal talk, to take up space on that website.
And don't forget our tax $ to put & keep it there!
 

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Blue_2009_SLT2 said:
BTW, this is nowhere near $8K. Even at 8% sales tax, a $49K vehicle amounts to $3,920.
And this is a tax deduction, not a credit.  So if you are in the 25% tax bracket (not sure exactly what the brackets are right now), you only get $980 of that $3,920.
 

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And it really SUCKS that those of us who bought our new cars in January get no credit whatsoever. Missed this big break by 2 weeks and it doesn't quite seem fair - espicially since I didn't pay the state taxes on it till after the February date.

:angryfire:
 

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I looked at our return for 2008 & see that you can claim (deduct) either state income tax or state & local sales tax. If you claim the sales tax, you can include big ticket items like motor vehicles. Since we have no income tax here, I deducted the sales tax paid, plus the tax on both vehicles (about $4600). You have to itemize deductions to claim this.

The only thing that I read changed is allowing a deduction for vehicles and not requiring itemization. Woot. Thanks IRS. ::)

“For those thinking about buying a new car this year, this deduction may give them a little more drive to make their purchase this year,” said IRS Commissioner Doug Shulman. “This deduction enables taxpayers to buy now and get cash back later on their tax returns.”

Translation:
We're making you think we're doing something special when in reality it is something you could have done last year by completing one additional form. Now you'll be grateful and think how marvelous the government is by holding your money via payroll deduction for up to a year before we decide to let you have some of it back. BTW, we're not paying you any interest on the money we're holding."
 

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Its the same way here in Texas. We don't have state income tax so we deduct sales tax every year anyway. So much for that part of the "stimulus" package.
 

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Great I get hosed Again!

First was missing the phantom year of energy tax credit for my new heat pumps (credit expired at the end of 07, but then was re-enacted for 09). I got the units in 08

Now Acadia purchase in Nov 08. 3% NC sales tax.


Oh well.
 

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Don't feel too bad- 3% of a $40K vehicle is $1,200 and as Geo noted, you only get xx% of that. Depending on your state's income tax rate, it may be better to claim sales tax & a "big ticket item" for 2008, although by now (4-14) that is water under the bridge.

Here are your state's tax rates:

How North Carolina State income tax rates are structured
The tax table below will show in detail the North Carolina state income tax rates by income tax bracket(s). There are 4 income tax brackets for North Carolina.
If your income range is between $0 and $12,750, your tax rate on every dollar of income earned is 6%.
If your income range is between $12,751 and $60,000, your tax rate on every dollar of income earned is 7%.
If your income range is between $60,001 and $120,000, your tax rate on every dollar of income earned is 7.75%.
If your income range is $120,001 and over, your tax rate on every dollar of income earned is 8.25%.
Income tax brackets data as of December 31st, 2004.

If you make $50K, you'd be paying $3,500 in income tax.

From Wikipedia:
North Carolina

North Carolina has a state-levied sales tax of 4.5%, effective October 1, 2008, with most counties adding an additional 2.5% tax, for a total tax of 7%. Mecklenburg County levies an additional 0.5% tax, which is directed towards funding the light rail system, for a total of 7.5%.

Since the state sales tax rate is 7%, with the vehicle purchase you'd have a maximum of $4,900 if all of your income was spent on taxable items.
 
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