2009 Motorcycle Tax Deduction: Dont forget

[Donk45]

Did you buy a spyder this year? hyea:

http://www.motorcycle-usa.com/2/2805/Motorcycle-Article/2009-Motorcycle-Tax-Deduction-Details.aspx

 

[Brevet05]

Wow, that was a big selling point for my wife, and I had since completely forgotten. Thanks for the reminder!
:2thumbs:

 

[Amanda B]

Yep...I almost forgot too!

I almost forgot about the tax break too!! That was the reason I bought in the summer instead of waiting until this spring!

 

[NancysToy]

Also don't forget that you do not need to itemize to claim this deduction.

 

[SpyderWolf]

I have a slight dilemma, and a big question about this deduction.

Here in SC, we have a $300 cap on sales tax for vehicle purchases. However, they then make us pay property tax for the same vehicle which is quite a bit more than the sales tax cap. In my case the property tax on my new Spyder was $526. So, the question is can I claim $826, or am I only allowed to claim the $300?

I also bought the used Spyder for my wife, is that elgible for the same deduction?

 

[DarkSage]

Well, since i bought my spyder a few months ago, i wanted to look into this deduction a bit more, found this on the IRS's website.

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

According to that, you must be the first owner of the vehicle, and they say something about fee's and other taxes (like in states that don't have sales tax), but, I'm not fluent in legal jargon so, i don't really know what they mean by that.

 

[BumbleBee]

Got all my copies made, seeing my Tax Lady on Monday. :2thumbs:

 

[xpeschon]

Paperwork

Hey Bumble Bee,,, What kind of paperwork in MO is need to get this tax break?

X

 

[SpyderWolf]

Thanks for the link to the IRS info DarkSage. :thumbup:

I don't know legalese either, but am thinking this section will allow me to deduct the entire amount.

Q. What if my state doesn’t have a sales tax?
A. Purchases made in states without a sales tax — such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon — can also qualify for the deduction. Taxpayers in states without a sales tax are entitled to deduct other qualifying fees or taxes imposed by the state or local government. The fees or taxes that qualify must be assessed on the purchase of the vehicle and must be based on the vehicle’s sales price or as a per unit fee.

 

[SpyderWolf]

I actually decided to call the IRS at their 800 number and ask my question about the double taxation issue.

Answer:

I can add the $300 sales tax I paid to the standard deduction, and have to submit a Schedule L form along with my return.

In order to claim the additional $528 I would have to itemize and claim it as a personal property tax expense. So, it all comes down to whether it is worthwhile to itemize your taxes or not.

On a side note, the lady at the IRS was very helpful and friendly. It took at least 15 minutes on hold to speak to her, but then she asked me a few basic questions and got the answers I needed.

 

[GaryTheBadger]

There's an income limit too, if you make too much $, no motorcycle purchase deduction allowed. We bought two bikes in 2009 but our combined income is over the limit. I shoulda retired! Bummer.

 

[j45p3r]

There's an income limit too, if you make too much $, no motorcycle purchase deduction allowed. We bought two bikes in 2009 but our combined income is over the limit. I shoulda retired! Bummer.

I wish I had that problem. $250,000 for joint filers.

 

[Sarge707]

If you Itemize you will fill out a worksheet for line 7 of schedule A. Remember, you can E-File for FREE at the IRS Site. I will have my $$ within 10 days of E-Filing!nojoke

 

[j45p3r]

I'm still waiting for my farging bank to send me the form for how much mortgage interest I paid.

 

[BumbleBee]

Hey Bumble Bee,,, What kind of paperwork in MO is need to get this tax break?

X

Not sure, I will find out on Monday. Let you know. Got the Article and made a copy of my payment receipt for the RT-S.

 

[Donk45]

I use turbo tax online, and it was pretty easy...step through process. How much did you pay for said motorcycle, how much was tax, then it did the calculations.

 

[GaryTheBadger]

I wish I had that problem. $250,000 for joint filers.

My bad, we dont' make that much, I mis-read the IRS site, we might qualify after-all!

 

[musicarcade]

I actually decided to call the IRS at their 800 number and ask my question about the double taxation issue.

Answer:

I can add the $300 sales tax I paid to the standard deduction, and have to submit a Schedule L form along with my return.

In order to claim the additional $528 I would have to itemize and claim it as a personal property tax expense. So, it all comes down to whether it is worthwhile to itemize your taxes or not.

On a side note, the lady at the IRS was very helpful and friendly. It took at least 15 minutes on hold to speak to her, but then she asked me a few basic questions and got the answers I needed.

Thanks
for doing my research for me SW!
Btw, did you know tonite's full moon is called the Wolf Moon?
owwwooooooh!

 

[SpyderWolf]

Thanks
for doing my research for me SW!
Btw, did you know tonite's full moon is called the Wolf Moon?
owwwooooooh!

Owwwoooooh! Is Right! We are getting ready to go out to dinner, and then the howling will follow shortly after. :2thumbs:

I forgot you are in the same stupid tax situation I am with the Spyder in SC.

Unfortunately I do not have to worry about getting anywhere close to the $250,000 earnings cap for married filing jointly either.