New Vehicle Tax

[MExcelsior]

For any accountants out there, does the New Vehicle Tax Deduction for 2009 apply to watercraft such as jet skis? It extends to motorcycles and I think a dealer here has been saying that it can also apply to ATVs? I doubt it, but thought I would check just-in-case.

 

[Woody]

http://www.irs.gov/newsroom/article/0,,id=211310,00.html

http://www.irs.gov/newsroom/article/0,,id=204519,00.html

 

[zboaterctf]

For any accountants out there, does the New Vehicle Tax Deduction for 2009 apply to watercraft such as jet skis? It extends to motorcycles and I think a dealer here has been saying that it can also apply to ATVs? I doubt it, but thought I would check just-in-case.

Yes (I am not an accountant) ... on October 22, 2004, then President George W, Bush signed the American Jobs Creation Act into law giving a special federal deduction for state and local sales tax paid on the purchase of recreational boats. The law allows the option for an individual claiming itemized deductions to include general sales tax or in the case of a major purchase, like a boat, the entire amount of the tax paid. The law allowing the sales tax deduction has been renewed several times by Congress with the most recent authorization set to expire in 2010.

For more details on the deduction, go to http://www.IRS.gov and download Publication 936 or the Fact Sheets.

Note - the key here is "option" of sate/local tax -or- sales tax. IRS has a formula for deciding sales tax based on your AGI and to that you can add the tax of a major boat purchase. You can then deduct whichever is greater: your state/local tax paid -or- your sales tax + boat purchase (car sales tax is separate line item this year due to stimulus program). Hope this helps.

 

[Dancin Dave]

In CT, its either the sales tax on the boat or state income tax as a deduction. Not both.

 

[AKBASSKING]

I am so sorry!

Alaska does not have a sales tax or personnal property tax!!:smt038:grin:

Registration......$24