so if i buy a car this week or next.. i will still have to pay '06 taxes right? or could i just wait to pay '07 in like 2 weeks???? i mean isnt it supposed to be a good deal to buy a car at the end of the month and end of the year?????? someone please advise.
2006-12-21 03:00:51 · 4 answers · asked by tooxswt 2 in Cars & Transportation ➔ Buying & Selling
i guess what i mean is..... if i buy a car this week... will i have to buy 2006 car tax and then when january comes, buy 2007 car tax as well.
2006-12-21 03:11:12 · update #1
i think i may be talking about registration fee. would i still have to pay for '06? and then another one in '07? or would i start out paying it in '07?
2006-12-21 03:22:08 · update #2
it does not matter unless the place where you lived change the tax rate next year.
2006-12-21 03:06:55 · answer #1 · answered by LEXUSRY 5 · 0⤊ 0⤋
I STRONGLY suggest checking with your state's revenue office before taking advice on this matter here. Each state is very different. Here in Arkansas, it doesn't matter when you buy in relation to the calendar year.
As for tax breaks or credits, consult your accountant. Many variables are involved; are you self employed? what will the use of the vehicle be? what size and kind of vehicle? is it a hybrid? is there still an allotment of tax credits on the hybrid you choose? etc. Many things to consider for this. Accountant is the only person to truly help you on that aspect.
I'll give you an insider's hint. The week between Christmas and New Year's is the slowest week of the year. So YES, we're more eager to put deals together during this time. Plus, trades gain some value now with tax-season just ahead.
2006-12-21 05:30:53 · answer #2 · answered by Jeff K 3 · 0⤊ 0⤋
Are you talking about registration fees? Those aren't really taxes, but an annual fee for the license plate. You pay that fee once a year, and it doesn't matter what month you start paying.
Sorry if I misunderstood your question, but the only tax you owe on the car is sales tax, which you pay only once, when you buy the car. There really isn't a better or worse time to buy a car tax-wise.
2006-12-21 03:16:05 · answer #3 · answered by Jerry J 3 · 0⤊ 0⤋
Yes, you will have to pay sales tax. But, the good news is that any vehicle you purchase before December 31st you can write off the taxes you pay for the car when you file end of year taxes. Even beyond the tax break, you can get the best deals on cars because dealerships have quotas for the year and most dealerships don't hit their mark, so they are willing to make deals to sell the cars before 2007 models come onto the lot.
2006-12-21 03:12:57 · answer #4 · answered by Alex C 1 · 0⤊ 0⤋