If you buy a car do you get a tax break at the end of the year, and how much if so? I bought a car around $21,000 and make about $24,000 a year, will I get a big break?
2007-12-20 06:52:23 · 9 answers · asked by sandeesbro 1 in Business & Finance ➔ Taxes ➔ United States
Most likely your tax break will be $0.00!
Buying a car for personal use is not deductible. The sales tax on the car can be used as an itemize deduction if you choose to deduct state sales taxes instead of state income taxes......but that is only if you have enough to itemize.
If the car is used for business (commuting back and forth to work does not count as business) you may receive a deduction.
2007-12-20 06:58:26 · answer #1 · answered by Wayne Z 7 · 3⤊ 0⤋
This Site Might Help You.
RE:
Buying a car = tax break?
If you buy a car do you get a tax break at the end of the year, and how much if so? I bought a car around $21,000 and make about $24,000 a year, will I get a big break?
2015-08-08 20:20:19 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If it is a car that you bought for your own use, i.e., not for use in a business, I'm afraid you do not get a tax break. In fact, depending on the state you live in, you may get an excise tax assessment.
Sorry.
2007-12-20 06:58:07 · answer #3 · answered by Edward G 6 · 2⤊ 0⤋
Did you pay sales tax?
Do you itemize?
If you *already* itemize and live in a state without an income tax, the state tax you paid can be added to the sales tax figure. If you don't itemize, the additional tax won't help you.
I paid $750 in sales tax when I bought a car in 2005. I already itemized, so the $750 resulted in my paying $112.50 less in taxes (15% bracket).
2007-12-20 06:59:50 · answer #4 · answered by Anonymous · 2⤊ 0⤋
The only way to get anything off your income taxes when you buy a car is if you bought a hybrid. There isn't anything for a normal car.
2007-12-20 06:56:18 · answer #5 · answered by Jamie 4 · 3⤊ 1⤋
Nothing for normal cars. I acutally don't even think there are too many breaks left for hybrid owners. This is all different if you are using the car for business. (Not driving yourself to work)
2007-12-20 08:51:05 · answer #6 · answered by regina falange 3 · 0⤊ 0⤋
Nice idea- it may help stimulate the economy which is what we do need. The thing that bothers me about it though is that it is income dependant (re-distribution of the wealth). If you make over a certain amount it won't apply to you. I personally would qualify- but I think it's unfair to make it only apply to certain people. They should give us the deduction on credit card interest also like they used to.
2016-03-18 05:18:24 · answer #7 · answered by Anonymous · 0⤊ 0⤋
For 2008 mileage allowance are as follows:
Business $0.505 per mile (Schedule C self-employed, or Schedule A unreimbursed employee business expense).
Charitable works $0.14 per mile (Schedule A).
Medical travel $0.19 per mile (Schedule A).
2007-12-20 09:58:38 · answer #8 · answered by Alan K 5 · 0⤊ 0⤋
you either get a tax break if it is a hybrid or is its for business and you write it off as an expense.
2007-12-20 07:09:45 · answer #9 · answered by PeteMac 2 · 1⤊ 0⤋
Not unless it is used for business, then you can take some deductions,
2007-12-20 06:56:30 · answer #10 · answered by Brenda 4 · 1⤊ 0⤋