matt55

The sales tax deduction on new car purchases says up to $49500. How will that effect cars over $49500?

drawde

"For luxury cars, the sales tax deduction would apply only to the first $49,500 of the purchase price. The interest deduction would apply only to interest on the first $49,500 borrowed."

Sounds like regardless of the cost after 49,500 you'll only get the sales tax deduction on the first 49,500.

http://www.wpri.com/dpp/news/us_news...20415052189929

Jim Brady

The final version of the bill cut interest rate deducton and will only be sales tax and excise tax. Not clear on whether it applies to vehicles over 49,500. Seems logical that deduction will apply up to 49,500, but hey who said the tax code was logical.
Jimmy

PatSC23

of course it has a salary cap - typical

sf280

Yes, isn't it $125K for single income, $250K for double. I would be safe to think that most purchasers of a c63 have a single income of over $125K if they in fact support themselves (not living with the family)

PatSC23

exactly - i should hope if you drive a 70k car you make at least $125k (unless of course it was a gift, from say, your parents)

Glock Guru

Just set up a Montana corporation and get it tax free any time you want. No sales tax in Montana.

RM-6302

I am not tax literate. Would the Gas Guzzler tax be included in this rebate? Thank you for the information.

PatSC23

doubt it - its written as sales tax and they would probably stick to that

if students or younger guys here are just starting their careers and get this a car as a gift, put it in your name and get the deduction .... take advantage of the new rules as long as u can

RM-6302

Thanks.