Tax Break - K-Bikes.com - Excellence in Motion
 
LinkBack Thread Tools Display Modes
post #1 of 8 (permalink) Old May 25th, 2009, 9:56 pm Thread Starter
Noob
 
campman's Avatar
 
Join Date: May 2009
Location: , CA, USA
Posts: 13
Tax Break

May be old news, but ran across this on BMWs website.. Music to my ears after bringing home my K13GT last week!

Stimulus Bill Includes Tax Break for Motorcycle Purchases
Language that provides a tax deduction for the purchase of a motorcycle is in the economic stimulus bill, the AMA reports. The AMA, working in conjunction with other stakeholders, worked diligently to secure the motorcycle provision within the measure.

Motorcycles are included as "qualified vehicles" in Section 1008 of the legislation. Those purchasing a new motorcycle from February 17, 2009 to December 31, 2009 will be able to deduct the sales and excise taxes on their 2009 tax returns. You can deduct taxes paid on the first $49,500 of the motorcycles price.

2009-03-05
campman is offline  
Sponsored Links
Advertisement
 
post #2 of 8 (permalink) Old May 27th, 2009, 7:00 pm
Member
 
Action_Mango's Avatar
 
Join Date: Mar 2009
Location: Kirkland, WA, United States
Posts: 97
Does a "use tax" count? Because I had to pay a whopping 10% use tax in March on a new GT.
Action_Mango is offline  
post #3 of 8 (permalink) Old May 29th, 2009, 10:43 am
Veteran
 
Robert_W's Avatar
 
Join Date: May 2007
Location: Troy, MT, USA
Posts: 1,658
Quote:
Originally Posted by Action_Mango
Does a "use tax" count? Because I had to pay a whopping 10% use tax in March on a new GT.
What the hell is a "use" tax? Define please.

'07 GT Sold- 2012 GSA Triple Black - Farkles O'Plenty!

I think I'm diagonally parked in a parallel universe....but I am NOT a Dental Floss Tycoon!
What's with this STUPID Cosmic Door?! ....Going Somewhere?!....Going Somewhere?!


Robert_W is offline  
Sponsored Links
Advertisement
 
post #4 of 8 (permalink) Old May 29th, 2009, 11:44 am
IBR# 366
 
Meese's Avatar
 
Join Date: Apr 2007
Location: Oxnard, CA, USA
Posts: 3,140
I think that means it "use" to be your money, but now it's theirs.

Ken
Pacific NorthWet
'13 Dark Graphite Metallic K16GTLD, 24K miles and counting...
'09 Magnesium Beige Metallic K13GT, 60K miles miles and counting...
'02 Mauve Metallic K12LTC, 106K miles and sold
BMWLT#145, IBA# 366, MOA# 111996, SCMA# 24032

All lower 48 states plus Alaska on the K13GT in two weeks . . .

Some people see the gas tank as half empty. Some see it as half full. All I care is that I know where the next tankful is coming from...
Meese is offline  
post #5 of 8 (permalink) Old May 29th, 2009, 3:51 pm
Member
 
Action_Mango's Avatar
 
Join Date: Mar 2009
Location: Kirkland, WA, United States
Posts: 97
Quote:
Originally Posted by Robert_W
What the hell is a "use" tax? Define please.
Yeah, exactly!

So in my state, Washington, we have a sales tax of approximately 10%. 10% sales tax is really killer when you want to buy a vehicle (I'd bet in a lot of cases the government is actually making more on the car sale than the dealership.)

However, I happened to buy my vehicle from an out of state dealer. This is not a loophole for the sales tax; when you bring the vehicle back into the state of Washington, you have to pay "use tax" which is the exact same percentage as the sales tax, and it's also based on the sales price. In other words, "use tax" is basically a sales tax except for whatever reason they call it use tax.

It is common for people living in Washington near the Oregon border to hop over the border to do their shopping sales-tax-free. Legally they are supposed to pay the use tax if they bring the items back with them into the state. Of course nobody ever does, except when it is a vehicle. When it is a vehicle you have to pay it to get the registration and plate.

So my question is, is that deductable?
Action_Mango is offline  
post #6 of 8 (permalink) Old May 29th, 2009, 7:59 pm
Veteran
 
Join Date: Jul 2007
Location: Anaheim, CA, USA
Posts: 1,397
Quote:
Originally Posted by Robert_W
What the hell is a "use" tax? Define please.
If you are a California resident and you buy something from out of state without paying sales tax or you pay a sales tax less than the amount charged in California, then state law requires you to pay a use tax for that item. The use tax matches the California sales tax that you would have paid if you bought the item in California. If you paid some sales tax in the other state, then the use tax is the difference between what you paid and what you would have paid if you had bought the item in California.

Most often, the item is purchased through mail order or the Internet, but it also applies to items purchased while traveling out of the state. This applies to anything taxable in the state, not just vehicles. The state income tax form includes a line for use tax, so you can pay it with your state income tax. I don't know if the term "use tax" is specific to California, but I suspect that many other states have something similar.
XMagnaRider is offline  
post #7 of 8 (permalink) Old May 30th, 2009, 12:53 am
Noob
 
Join Date: May 2009
Location: arroyo grande, CA, USA
Posts: 3
You will be able to deduct the "use tax" as it is equivalent to sales tax.
Obviously do not know if this applies in your case but if your income exceeds about $240k (don't have exact figure right now) you cannot take this deduction. Like almost everything in the tax code there are phase outs for upper income taxpayers.
yellowwing is offline  
post #8 of 8 (permalink) Old May 30th, 2009, 1:03 am
Veteran
 
Robert_W's Avatar
 
Join Date: May 2007
Location: Troy, MT, USA
Posts: 1,658
Yeah, these kinds of taxes I'm familiar with. Buying out of state and having to pay the taxman. Just thought of the term "use tax" differently I guess. I was picturing WA doing something to try and make up their budget deficit like a luxury tax on top of their horrendous sales tax. Every time I get out of state into places with 10% or more sales tax it drives me nuts. Then add on lodging tax, this tax and that tax......argh.

There is a bright side of this though, here in MT we have no sales tax. I bought my bike from the dealer in Spokane WA, about 3 hours away. Any way I filled out a form and poof! No sales tax! Maybe some of you guys should get a MT address huh?

However we all pay some how......

'07 GT Sold- 2012 GSA Triple Black - Farkles O'Plenty!

I think I'm diagonally parked in a parallel universe....but I am NOT a Dental Floss Tycoon!
What's with this STUPID Cosmic Door?! ....Going Somewhere?!....Going Somewhere?!


Robert_W is offline  
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the K-Bikes.com - Excellence in Motion forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Similar Threads
Thread Thread Starter Forum Replies Last Post
Break in 07 GT johngvca K12/1300GT (Next Gen) 13 May 2nd, 2009 8:19 pm
BREAK in knowledge Racegun K12/1300GT (Next Gen) 36 Apr 5th, 2007 4:48 pm
Front Break Squeal and 06 software mod. 143LRSD K12/1300R/R-Sport 10 May 30th, 2006 1:46 pm
??? Break in for GT / S ??? BamaCop K12/1300GT (Next Gen) 4 Apr 30th, 2006 6:50 pm

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome