i want to buy a car, but i don't know if i want new or used. if i get either one, what's the procedure in getting tax deduction for new or used? how much would you usually get back or what form should i use for it? please someone help me.
2007-06-02 07:47:04 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
There is only one tax deduction associated with buying a car. If you itemize your deductions, you can claim either the state income tax you pay or the sales tax you pay. If you claim sales tax, the IRS has a table to calculate the normal sales tax for someone in your income bracket. You can claim the sales tax charged on your auto in addition to what their table calculates. It makes no difference whether the car is new or used. Your deduction is limited to the amount of sales tax charged.
There are deductions available for the purchase of hybrid cars, but you didn't indicate that. If you use your car in a trade or business, you can also deduct some of the cost.
2007-06-02 07:56:51 · answer #1 · answered by BS 3 · 0⤊ 0⤋
If you own a business and the business is buying the car, then you can probably depreciate it, if you choose to use actual car expenses rather than just claiming mileage.
If the car is for your personal use, there isn't a deduction for buying a car, whether it's new or used.
You didn't give enough info to really answer your question. What are you going to be using the car for?
2007-06-02 10:24:21 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
You dont' get a tax deduction for buying a car. Where did you get that idea?
You can't even deduct the interest you'll pay on the loan.
2007-06-02 08:01:09 · answer #3 · answered by Oh Boy! 5 · 0⤊ 1⤋
Unless the vehicle will be used in business, there is no tax deduction for a car. If you itemize and if your state levies an ad-valorem personal property tax on motor vehicles you can deduct that tax.
2007-06-02 08:06:02 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 0⤋
The IRS authorized fee is .505 in line with mile. you are able to declare this fee much less what you receive out of your business enterprise for miles pushed or .one hundred fifty five as an reimbursed enterprise cost. save a on a regular basis log of all miles pushed and all reimbursements gained via your business enterprise.
2016-11-25 01:24:28 · answer #5 · answered by ? 3 · 0⤊ 0⤋
Free brand new car after obama rebate
2016-04-01 11:06:47 · answer #6 · answered by Anonymous · 0⤊ 0⤋