When filing this years Income Tax, do I need to provide information on a new motorcycle purchase in 8/06?

Question

I bought a new motorcycle in August of 06, do i need to put all that necessary information in this years taxes?

I am currently making monthly payments and all that..

I've never purchased a new vehicle prior to the motorcycle, so I'm not quite sure if it would apply.

Any insight would be great. Thanks!!

Also, this motorcycle is for personal use, and is not a business expense or anything like that.

Answer 1

Personal expenses (i.e buying a car or motorcycle) are not reported on your taxes. The only thing that could be reported is if you paid local property tax (based on the value of the motorcycle) and itemized your deductions, then that tax can be reported. But to itemize, you need to total more than the standard deduction to do so.

Interest paid is probably not deductible, same thing with the sales tax you paid on the bike (but you need to go through the tax preparation process to be sure)

Answer 2

Unfortunately, he'll make a decision that "core elegance" is outlined as any person making beneath $seventy five,000 a 12 months, which is not a lot for a 2 sales loved ones with, say, two youngsters. Then any person making over that quantity can have their taxes improved immensely -- when you consider that or else Obama is probably not in a position to have the funds for his socialist insurance policies. It is a falsehood, incidentally, that we Americans pay much less taxes than any person else -- when you consider that plenty of our taxes are hidden in license costs and so on. It begs the query -- simply what quantity of money must the federal government take from ANYBODY? When my daughter is grown, is it reasonable that the federal government will probably be taking greater than one million/two of each buck she owns if she makes greater than 60K/12 months? No, it isn't. People spend years on their schooling, running their approach up the ladder, saving and sacrificing for retirement, and it is not proper that when you consider that they're hardworking and triumphant that they get punished for it. Higher taxes are demotivating and demoralizing, they usually punish folks that paintings difficult and the ones with essentially the most motivation and ambition. And Obama's so-known as tax "remedy" isn't going to occur, however although it does, my husband and I will probably be purchasing it, no longer receiving it. Obama -- unhealthy insurance policies for what is meant to be a loose nation.

Answer 3

If you use a schedule A with your taxes(most people with home mortgage interest use a schedule A), you might be able to deduct your motorcycle interest and plate fees. You can also deduct your car interest if you bought it in 06. The only way you can deduct your state sales tax is if its bigger than your taxes the state took out of your paycheck. Check with a tax pro to determine if your eligible.

Answer 4

If you itemize deductions on Schedule A and live in a state with no state income taxes you can deduct the sales tax on it with a table amount based on your income. Otherwise no reporting.

Answer 5

The IRS does not need to know anything about any personal property purchases. There's no place to report that type of information anyway.