Can someone help me understand the 09 new vehicle tax break

Lil Buddy · Post by **Lil Buddy** » Mon Oct 12, 2009 9:05 pm

I remember a post about this many months ago. But I don't remember a definate answer. I hope to buy a new Black Jack soon and am curious as to how this tax credit thing will play out.

09 has been an odd year for me. Got laid off (actually that happend in 2008), started a small business, and went back to school. I don't think this is going to be a "Turbo Tax" year this time around.

So, lets say I pay $280 in taxes on the new BJack (the scoot will be a business expense if that makes a difference). I do itemize. What will all that mean in the end?

pyrocpu · Post by **pyrocpu** » Mon Oct 12, 2009 9:43 pm

Hey there Lil Buddy... I asked the same thing a while back...
viewtopic.php?p=158034&highlight=#158034

Lil Buddy · Post by **Lil Buddy** » Mon Oct 12, 2009 10:17 pm

So, the moral of the story is to expect around $30 and some crappy fast food? Is that about right?

Dooglas · Post by **Dooglas** » Tue Oct 13, 2009 2:07 am

Well, you get to treat the sales tax you pay on a new scoot as a tax deduction (not a credit). As was pointed out before, if the sales tax on your scoot was $280 and you itemize and are in the 25% tax bracket, then your taxes are reduced by $70. Now if you are using your Buddy 100% in an owner operated business, that is a whole different deal. Operating expenses (gas and servicing) plus depreciation on the scoot are business expenses which you claim on schedule C when you complete your tax return.