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Well it shouldn't come as a surprise to anyone...
It's income... and it's part of the value exchanged which calculates sale tax.
Those who live in states which tax income, will be paying the sales tax on the 4500 and will no doubt be adding that 4500 to their income for both state and federal taxation.
Ain't socialism grand?
Now the cool part is, that when your 'free health-care' comes to pass, you'll be taxed on both state and federal levels... for every inflated cent of it.
But remember... The BOY King promised to not raise your taxes ONE CENT!
Hey Yogi! It's Deja vu all over again!
Ya have to understand that the ideological left is effectively a cross between PMS and GPS...
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A crazy bitch that can find you anywhere...
ROFL...
Leftists...
NO DOUBT the CONS will just keep repeating this lie no matter how many times the truth is posted in the same thread.And then projecting conclusions based on this lie.
CARS.gov - Car Allowance Rebate System - Helpful Q&As for Consumers - Formerly Referred to as “Cash for Clunkers”
Is the credit subject to being taxed as income to the consumers that participate in the program?
NO. The CARS Act expressly provides that the credit is not income for the consumer.
back to top
Well it shouldn't come as a surprise to anyone...
It's income... and it's part of the value exchanged which calculates sale tax.
Those who live in states which tax income, will be paying the sales tax on the 4500 and will no doubt be adding that 4500 to their income for both state and federal taxation.
Ain't socialism grand?
Now the cool part is, that when your 'free health-care' comes to pass, you'll be taxed on both state and federal levels... for every inflated cent of it.
But remember... The BOY King promised to not raise your taxes ONE CENT!
Hey Yogi! It's Deja vu all over again!
Ya have to understand that the ideological left is effectively a cross between PMS and GPS...
.
.
.
.
.
.
.
.
.
.
.
.
A crazy bitch that can find you anywhere...
ROFL...
Leftists...
NO DOUBT the CONS will just keep repeating this lie no matter how many times the truth is posted in the same thread.
CARS.gov - Car Allowance Rebate System - Helpful Q&As for Consumers - Formerly Referred to as “Cash for Clunkers”
Is the credit subject to being taxed as income to the consumers that participate in the program?
NO. The CARS Act expressly provides that the credit is not income for the consumer.
back to top
Wow ... you need a visit from captain obvious. The money came from taxes, therefore even though it's already been paid, everyone paid for it. I'm pissed that my taxes were wasted on something I don't even use, ever.
3 Money Reasons to Buy a New Car - Tax Deductions, Used CAR Trade-In Vouchers and Electric-Hybrid Credits
3 Money Reasons to Buy a New Car - Tax Deductions, Used CAR Trade-In Vouchers and Electric-Hybrid Credits
written by Andy on Monday
car buyer tax break stimulusIf you are in the market to buy a new car or just looking for a reason to upgrade your existing car, then you could not have picked a better time than now. Apart from local and foreign automakers desperately cutting prices to stay in business or to revive flagging sales, the US government is doling out tons of free stimulus money and tax credits/deductions to entice new car purchases. I have written about the three main programs in detail, but here is a summary and ways you could take advantage of all three of these programs at the same time.
1. New Car State or Local Tax Deduction
This stimulus funded legislation provides tax breaks for new vehicle buyers by giving them a federal-income-tax deduction on local sales and excise taxes. It enables taxpayers to buy now and get cash back later on their 2009 tax returns (filed in 2010). The deduction is limited to the state and local sales and excise taxes paid on up to $49,500 of the purchase price of qualified new foreign or domestic cars, SUV's, light trucks, motor homes or motorcycles that weigh no more than 8,500 pounds. You can still buy a qualifying vehicle for more than $49,500 (e.g. an $80,000 BMW), but you will only get a tax deduction up to the specified limit. The deduction is only available to families making less than $260,000 (or $135,000 for single filers). It is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers. Further, the new vehicle must be purchased on or after Feb. 17, 2009, and before Jan. 1, 2010, to qualify for the deduction.
Value of Credit: The average new car purchase price the first 11 months of last year was $28,280, and the average used car trade-in value was $15,203, according to data from the National Automobile Dealers Association. States typically tax the difference — $13,077 in this case. So a 5% sales tax rate would be $654, meaning the deduction would reduce taxable income that much. Each state has a different car sales tax, so the deduction will vary by state. For states that do not have state or local taxes on cars, the IRS recently ruled that buyers are entitled to deduct other fees or taxes imposed by the state or local government. The fees or taxes that qualify must be assessed on the purchase of the vehicle and must be based on the vehicle’s sales price or as a per unit fee.
** Search and get multiple quotes for your next new car @ Yahoo! Autos **
2. Cash for Clunkers - Car Allowance Rebate System (CARS)
The Car Allowance Rebate System is a recently approved initiative that will help you pay for a new, more fuel efficient car or truck from a participating dealer when you trade in a less fuel efficient car or truck. Under this program, auto buyers will be entitled to discounts/vouchers of $3,500 or $4,500, based on the following criteria.
- Tade-in cars must get no more than 18 miles per gallon, have been built in 1984 or after, and have been owned and insured by the purchaser for at least a year. A consumer could then get a $3,500 voucher toward a car that got at least 22 mpg. The value of the voucher will increase to $4,500 if the new car is 10 mpg higher than the trade-in. Consumers will also be able to use the vouchers toward the five-year lease of a vehicle.
- A $3,500 voucher can go to a small light-duty truck that gets at least 18 mpg and is two mpg higher than the trade-in. A 4,500 voucher will be issued for a truck with a five mpg improvement.
- A $3,500 voucher will be issued for large light-duty trucks that get at least 15 mpg and are one mpg higher than the trade-in. A $4,500 voucher will be issued for a truck with a two mpg improvement.
- No trade in value: Because the old vehicle will be destroyed, the credit is given instead of the regular trade-in value — not in addition to it — though some dealers might compensate customers for the vehicles scrap value.
The vouchers under this program will be issued electronically to dealers almost immediately upon the point of sale, so the credit should be available at purchase. This program has limited funding of $1 billon (enough for about 250,000 consumers) and will likely expire by Nov 1, if not sooner. For more details, see the official government site cars.gov; and to determine if your car meets the fuel efficient requirements go to FuelEconomy.gov
Get your best new car quote from Yahoo! Autos
3. Green Energy Car Credits
President Obama’s stimulus bill provides a modified credit for qualified plug-in electric drive vehicles purchased after Dec. 31, 2009. To qualify, vehicles must be newly purchased, have four or more wheels, have a gross vehicle weight rating of less than 14,000 pounds, and draw propulsion using a battery with at least four kilowatt hours that can be recharged from an external source of electricity. The minimum amount of the credit for qualified plug-in electric drive vehicles is $2,500 and the credit tops out at $7,500, depending on the battery capacity. The full amount of the credit will be reduced with respect to a manufacturer's vehicles after the manufacturer has sold at least 200,000 vehicles.
This credit is in addition to the Hybrid Auto Credit for vehicles purchased or placed into service after December 31, 2005 which may be eligible for a federal income tax credit of up to $3,400 (see IRS site for list of qualifying vehicles), Credit amounts begin to phase out for a given manufacturer once it has sold over 60,000 eligible vehicles.
Can I use the above credits together?
Yes. You can use the above credits together. For example, you can trade in your qualifying old car under the cash-for-clunkers program to get the discount voucher and also claim a deduction for the sales and excise taxes you pay on the new car. Here is a hypothetical example from a recent Vanguard article on this topic:
Johnny is currently driving a 1995 Dodge Caravan that has an estimated fuel economy rating of 17 miles per gallon. Because it has 90,000 miles and is in only fair condition, it has a trade-in value of $350, according to Kelley Blue Book. However, if he trades it for a 2009 Nissan Versa, which has an estimated 29 miles per gallon fuel economy rating, he would qualify for a $4,500 voucher because the new car's rating is at least 10 miles per gallon more than the Caravan's. That would reduce the cost of the new car from its manufacturer's suggested retail price of $10,710 to $6,210.
In addition, because he earns less than $125,000 a year, Johnny can deduct the sales tax he pays on the vehicle from his federal income taxes next year. Finally, Johnny would save money on gasoline each week because of the greater fuel efficiency of his new car.
To get all the benefits you must still meet each of the individual program requirements and not claim the same tax break or deduction twice. Further, only one credit of each type may be issued for joint registered owners of a single eligible trade-in vehicle.
What's the difference between a tax deduction and a credit?
Many of the tax breaks on new cars are either deductions or credits, and it is important to understand the difference. A tax deduction reduces the amount of income for which you are taxed. For example, if your taxable income were $50,000, a $2,000 deduction would reduce it to $48,000. So, you would pay taxes on an income of $48,000 instead of $50,000. This means your actual savings would be a fraction of the $2,000 deduction. A tax credit reduces the total amount of income tax you owe. So, if you owed $10,000 in federal income tax, a $2,000 credit would reduce the amount you owed to $8,000. With a credit, your actual savings would be $2,000
MATCHING rebates, I can understand. This money from the government, that is OURS to start with, should have been in the form of a GRANT so states couldn't do the ol' double bite.
That's all I'm asserting. It gives the appearance of a con job.
Yes....excellent point. You are paying a sales tax on money that was originally tax money.
But some people simply want to ignore that part and simply mention the few on baords such as this that believed AND repeated that it was an "income tax".....
Those that capitalized on the plan are paying a tax on their tax dollars....sort of.
No big deal..but certainly unusual.
Yes, it's still a tax, and yes, it was unusual, passed as part of the 2009 Supplemental Appropriations (aka Omnibus bill). But it also passed by a vote of 91-5 in the Senate.
Persoanlly, I am not complaining about it and I think I made that clear. Look...I pay a hell of a lot per year in taxes.....between my wife and I we pay over 150K in taxes AFTER all of our deductions and exemptions.....and that does not include the payroll taxes I pay for my employees.
I have no problem paying taxes and I have no problem when others have to pay taxes on something that my tax dollars support. And I have NEVER complained about tax increases....
I DO have a problem with the government demonizing me for making enough money to pay 150K a year in taxes...employing over 20 poeple....offering insurance for 20 people...paying unemployment insurance for 20 people...paying bonuses to 20 people...etc...etc...etc.
I do not mind programs to help ease the pain of those less fortunate than I am during times of recessions...But I DO have an issue with an adminsitration taking credit for it....
Sure....demonize me as you tax me more and tell the people "Look at what the government does for you".
Perhaps Obama would have a little more support if he said "we should thank those that are paying their taxes and allowing us to help ease your pain during these hard times.
But no.....not a word about that from him. No...instead...we are all grouped in that same category...riuch evil greedy business owners that are unpatriotic becuse they dont like to pay taxes.
Yeah...I have a chip on my shoulder.....but perhaps now you see why?
OK, so let's see if we can summarize this:
The Federal Government is giving consumers $4500.00 in tax-free dollars to buy a new car. Correct?
The States are trying to apply taxes to this amount. Correct?
So... How is that some Federal Government conspiracy?
Sounds like if people want to complain, they need to complain to the state governments that are trying to rip them off.
Am I wrong here?
Persoanlly, I am not complaining about it and I think I made that clear. Look...I pay a hell of a lot per year in taxes.....between my wife and I we pay over 150K in taxes AFTER all of our deductions and exemptions.....and that does not include the payroll taxes I pay for my employees.
I have no problem paying taxes and I have no problem when others have to pay taxes on something that my tax dollars support. And I have NEVER complained about tax increases....
I DO have a problem with the government demonizing me for making enough money to pay 150K a year in taxes...employing over 20 poeple....offering insurance for 20 people...paying unemployment insurance for 20 people...paying bonuses to 20 people...etc...etc...etc.
I do not mind programs to help ease the pain of those less fortunate than I am during times of recessions...But I DO have an issue with an adminsitration taking credit for it....
Sure....demonize me as you tax me more and tell the people "Look at what the government does for you".
Perhaps Obama would have a little more support if he said "we should thank those that are paying their taxes and allowing us to help ease your pain during these hard times.
But no.....not a word about that from him. No...instead...we are all grouped in that same category...riuch evil greedy business owners that are unpatriotic becuse they dont like to pay taxes.
Yeah...I have a chip on my shoulder.....but perhaps now you see why?
What are you even talking about?
Seriously, you're paranoid.
I have never heard anyone in any postition of power say anything like what you're saying in this post.
Who exactly is "Demonizing" rich people? Please be as specific as possible.
And remember, raising taxes on the top tax brackets is certainly not "demonizing" anyone.
OK, so let's see if we can summarize this:
The Federal Government is giving consumers $4500.00 in tax-free dollars to buy a new car. Correct?
The States are trying to apply taxes to this amount. Correct?
So... How is that some Federal Government conspiracy?
Sounds like if people want to complain, they need to complain to the state governments that are trying to rip them off.
Am I wrong here?
I realize you are asking a question there, and I agree with you, but I don't see it as a rip off by the states. If I were buying a car, with a price of say $18,500 and I traded in a clunker worth $4,000 and the government gave me $4,500 why should the state only charge tax on the $14,000? The buyer is getting the advantage of an $18,500 vehicle. Why shouldn't the buyer pay sales tax on the $18,500?
Immie
I must be paranoid.
Thanks.
Jeez...people really are deaf dumb and blind out there.
OK, so let's see if we can summarize this:
The Federal Government is giving consumers $4500.00 in tax-free dollars to buy a new car. Correct?
The States are trying to apply taxes to this amount. Correct?
So... How is that some Federal Government conspiracy?
Sounds like if people want to complain, they need to complain to the state governments that are trying to rip them off.
Am I wrong here?
Now, I have heard people "demonize" certain large corporations, especially financial firms.
Are you a board member at one of those?
I must be paranoid.
Thanks.
Jeez...people really are deaf dumb and blind out there.
If you feel you're not being paranoid, then just answer the question.
Point out specific individuals in government that are "Demonizing" the rich and give examples of said "demonization".
OK, so let's see if we can summarize this:
The Federal Government is giving consumers $4500.00 in tax-free dollars to buy a new car. Correct?
The States are trying to apply taxes to this amount. Correct?
So... How is that some Federal Government conspiracy?
Sounds like if people want to complain, they need to complain to the state governments that are trying to rip them off.
Am I wrong here?
you missed that part of the stimulus, congress added for 2009, you get to deduct what you paid in car sales taxes and car local taxes separately on your income tax for any new car purchase, even if you do not file the long form and even if you do take the state sales tax deduction or state income tax deduction on your federal income tax...read my thread above...
OK, so let's see if we can summarize this:
The Federal Government is giving consumers $4500.00 in tax-free dollars to buy a new car. Correct?
The States are trying to apply taxes to this amount. Correct?
So... How is that some Federal Government conspiracy?
Sounds like if people want to complain, they need to complain to the state governments that are trying to rip them off.
Am I wrong here?
you missed that part of the stimulus, congress added for 2009, you get to deduct what you paid in car sales taxes and car local taxes separately on your income tax for any new car purchase, even if you do not file the long form and even if you do take the state sales tax deduction or state income tax deduction on your federal income tax...read my thread above...
Ahh, well, excellent.
I think my poiont was though, why would anyone be blaming the Federal Government for any perceived "rip off" concerning state taxes, whether it actually exists or not?
Now, I have heard people "demonize" certain large corporations, especially financial firms.
Are you a board member at one of those?
And has Obama, Pelosi or anyone for that matter made it clear to the public that not ALL people in the fianncial world are greedy?
Try being wealthy in NYC......it sux ass. You are stared at in restaurants, given the finger throiugh the window by passersby......have beer thrown on you at ball games when in your box seats.....have peole call you "Jew" when waiting on line at a Broadway show...
And what have I done? Acheived success?
I pay big bucks in taxes....yet I have yet to hear Obama do anything but take credit for taking MY money and giving it to others.
Maybe...JUST maybe...if he said that MOST oif the rich earned it, deserve it, and pay 90% of the tax revenue of this country, people would be a bit more civil to us.
It sux.
This arguement reminds me of the joke about teaching a pig to dance. It is a waste of time and annoys the pig.
I want someone to tell me how to borrow and spend my way out of debt. I dint care if you're Dem. Or Rep. Just tell me how going 2 trillion dollars in debt this year and approx. 12 trillion over the next decade is going to get us out of this mess?
Kind of reminds you of the Roman Empire doesn't it ? Keep the public fat(wow almost free cars) and happy( Big Brother is going to keep my bank open and my house payment made for me) and entertained ( you've got to be kidding me! ) and you can do anything you want. I'm sorry that my grand kids will have to pay for this horrible mess. We ( the people of this fine country) fucked up. We allowed corrupt people to take this country over without firing a shot. Just so you Obama folks don't feel left out, have you realized that nobody can criticize him with out being called; (a) neocon (b) Bushite,(c) racist.
Just as a point of clarification, I have a son in Afghanistan right now and I really would like all those boys and girls to come home. NOW!! I don't care who's war you call it, I want it over and done with. Let those people fight it out and we will take on the winner.
