No political posts, please!!!
CARS rebate is TAX FREE!!! don't believe the dealers
so i've been cube hunting for the past week, and the dealers must be making their own MSRP stickers
just an example, 1.8s
Sacramento - $16,690
Fairfield - $19,800
Vallejo - $15,410
any how the purpose of my post is that dealers are charging taxes on full vehicle amount before the cars discount,
my first attempt at purchasing a cube they DID do it correctly but since they wouldn't budge on the price
(full MSRP & destination) plus the msrp was high, I left
my next attempt they taxed the full price, then subtracted the cars discount (I qualify for $4500 with a 91 explorer)
but since they didn't like my DMV printout for the past 10 years registration,
I am awaiting a letter from DMV specifically showing the 08/09 - current registration
So as I was home, cubeless I tried to figure out what was up with the variable taxes,
CARS.gov says to talk to your state tax specialist
DONE - and I quote
"Rebates paid by the NHTSA to new car dealers under this program are considered sales to the United States Government.
Sales tax does not apply to sales to the United States or it instrumentalities. The portion of the gross receipts from the sale or
lease of a new vehicle paid by the NHSTA, by the use of the CARS rebate, is a nontaxable sale to the United States.
http://www.boe.ca.gov/news/specialnotices.htm
click July
so with all the facts and printout in hand, I checked with a few more dealers,
LOL ,
"no we tax the total value, the government giveth, and they taketh away"
"Yes the whole car value is taxed before the rebate," -well what if I have proof that it isn't-
"no, thats the way it is" - I talked with the California State Board of Equalization about it this morning -
"no, I don't think so" - so I read him the above paragraph,
"um, okay, you have that paper with you? bring it with you and ask for me, Tony"
just an example, 1.8s
Sacramento - $16,690
Fairfield - $19,800
Vallejo - $15,410
any how the purpose of my post is that dealers are charging taxes on full vehicle amount before the cars discount,
my first attempt at purchasing a cube they DID do it correctly but since they wouldn't budge on the price
(full MSRP & destination) plus the msrp was high, I left
my next attempt they taxed the full price, then subtracted the cars discount (I qualify for $4500 with a 91 explorer)
but since they didn't like my DMV printout for the past 10 years registration,
I am awaiting a letter from DMV specifically showing the 08/09 - current registration
So as I was home, cubeless I tried to figure out what was up with the variable taxes,
CARS.gov says to talk to your state tax specialist
DONE - and I quote
"Rebates paid by the NHTSA to new car dealers under this program are considered sales to the United States Government.
Sales tax does not apply to sales to the United States or it instrumentalities. The portion of the gross receipts from the sale or
lease of a new vehicle paid by the NHSTA, by the use of the CARS rebate, is a nontaxable sale to the United States.
http://www.boe.ca.gov/news/specialnotices.htm
click July
so with all the facts and printout in hand, I checked with a few more dealers,
LOL ,
"no we tax the total value, the government giveth, and they taketh away"
"Yes the whole car value is taxed before the rebate," -well what if I have proof that it isn't-
"no, thats the way it is" - I talked with the California State Board of Equalization about it this morning -
"no, I don't think so" - so I read him the above paragraph,
"um, okay, you have that paper with you? bring it with you and ask for me, Tony"
1 - 20 of 25 Posts
this is NOT political,
I am trying to BUY a Cube, I should have it by this weekend
I am trying to BUY a Cube, I should have it by this weekend
I just bought my Cube last night. Even more than a week ago when I was in negotiations with the dealer, the "REBATE" was deducted before any taxes figured. I made sure of that!
mine was done the same way. i was also told that i would be able to right off my tax this year also dont know if federal or state thoughhomeline said:I just bought my Cube last night. Even more than a week ago when I was in negotiations with the dealer, the "REBATE" was deducted before any taxes figured. I made sure of that!
Yep, dealer had a big poster board promoting this. I just assumed it was off the federal.spider97 said:mine was done the same way. i was also told that i would be able to right off my tax this year also dont know if federal or state though
It's not a "REBATE".homeline said:I just bought my Cube last night. Even more than a week ago when I was in negotiations with the dealer, the "REBATE" was deducted before any taxes figured. I made sure of that!
After much reading and understanding I am good, this will get treated not only as income but a gift to you so it will be taxed at the end of the year (you will have to claim it on your taxes) at 35% tax rate, so you will pay taxes on that gift. Lets see $4500 X .35 = $1,575 you pay back so you only got $2,925 for your used car.
Yes the Govt. do givith and taketh away. :yes:
Yes the Govt. do givith and taketh away. :yes:
yipes!ChristineK said:After much reading and understanding I am good, this will get treated not only as income but a gift to you so it will be taxed at the end of the year (you will have to claim it on your taxes) at 35% tax rate, so you will pay taxes on that gift. Lets see $4500 X .35 = $1,575 you pay back so you only got $2,925 for your used car.
Yes the Govt. do givith and taketh away. :yes:
glad i wasn't able to do it with my corrado since i'll probably be able to sell it for $4500 (tax-free!) yep dealers are allowed to set their own prices for the cars they're selling. its that freedom that has people buying brand new GT-Rs at $20k mark-up or more.InYubaSha said:so i've been cube hunting for the past week, and the dealers must be making their own MSRP stickers
just an example, 1.8s
Sacramento - $16,690
Fairfield - $19,800
Vallejo - $15,410
following up...i did a bit of searching this weekend and couldn't find anything that mentioned buyers would be taxed for the CARS voucher. however, i found a few sites that said -dealers- will be taxed. can anyone provide more info on this?ChristineK said:After much reading and understanding I am good, this will get treated not only as income but a gift to you so it will be taxed at the end of the year (you will have to claim it on your taxes) at 35% tax rate, so you will pay taxes on that gift. Lets see $4500 X .35 = $1,575 you pay back so you only got $2,925 for your used car.
Yes the Govt. do givith and taketh away. :yes:
Well if the above are correct and I am wrong you know the dealer will pass the buck onto the consumer somewhere in there, they are not going to eat this. Dealer tax = Your fee (hidden of course)coolguy said:following up...i did a bit of searching this weekend and couldn't find anything that mentioned buyers would be taxed for the CARS voucher. however, i found a few sites that said -dealers- will be taxed. can anyone provide more info on this?
well, apparently dealers didn't get clarification on this until the program had been going on for a few weeks...i guess the dealer agreement info was rather vague. but the CARS website very clearly says the voucher is not considered income for consumers/buyers (though it doesn't say whether it's considered a gift or not...but i don't believe gifts under $10k are taxed anyway). it also says it's illegal for dealers to charge buyers a fee for using the program. some people might have to pay state/local tax on it depending on their state, but there's no other mention of being taxed. could just be sneaky/vague, but i wasn't able to find anything via google to suggest otherwise ???ChristineK said:Well if the above are correct and I am wrong you know the dealer will pass the buck onto the consumer somewhere in there, they are not going to eat this. Dealer tax = Your fee (hidden of course)coolguy said:following up...i did a bit of searching this weekend and couldn't find anything that mentioned buyers would be taxed for the CARS voucher. however, i found a few sites that said -dealers- will be taxed. can anyone provide more info on this?
I think time will be our guide on how this all works out and the ramifications of it. It will be like pulling that thread on your shirt.
I saw on Foxnews this AM a small piece on the possible "Cash for Clunkers Appliances" to include AC and furnace replacement. :roll:
EDIT::: Found it
http://www.marionstar.com/article/20090825/UPDATES01/90825007.
Coming soon: 'Cash for Appliances'
CHICAGO (CBS) ? More than 600,000 people cashed in on the Cash for Clunkers program. Now, there's word that an old fridge or dishwasher may bring you some loot. Coming this fall: Cash for Appliances. The government plans to roll out another rebate program much like the clunkers. CBS 2's Mike Puccinelli reports on how the energy-efficient plan will work.
I saw on Foxnews this AM a small piece on the possible "Cash for Clunkers Appliances" to include AC and furnace replacement. :roll:
EDIT::: Found it
http://www.marionstar.com/article/20090825/UPDATES01/90825007.
Coming soon: 'Cash for Appliances'
CHICAGO (CBS) ? More than 600,000 people cashed in on the Cash for Clunkers program. Now, there's word that an old fridge or dishwasher may bring you some loot. Coming this fall: Cash for Appliances. The government plans to roll out another rebate program much like the clunkers. CBS 2's Mike Puccinelli reports on how the energy-efficient plan will work.
From the FAQ section of cars.gov website:coolguy said:well, apparently dealers didn't get clarification on this until the program had been going on for a few weeks...i guess the dealer agreement info was rather vague. but the CARS website very clearly says the voucher is not considered income for consumers/buyers (though it doesn't say whether it's considered a gift or not...but i don't believe gifts under $10k are taxed anyway). it also says it's illegal for dealers to charge buyers a fee for using the program. some people might have to pay state/local tax on it depending on their state, but there's no other mention of being taxed. could just be sneaky/vague, but i wasn't able to find anything via google to suggest otherwise ???ChristineK said:Well if the above are correct and I am wrong you know the dealer will pass the buck onto the consumer somewhere in there, they are not going to eat this. Dealer tax = Your fee (hidden of course)coolguy said:following up...i did a bit of searching this weekend and couldn't find anything that mentioned buyers would be taxed for the CARS voucher. however, i found a few sites that said -dealers- will be taxed. can anyone provide more info on this?
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.
State and Local sales taxes are deductible for cars purchased in 2009! One of the things added to the Economic Stimulus Package bill was a temporary provision that allows people who buy new automobiles in 2009 to deduct any state and local sales and excise taxes on that purchase from their taxable income.
Details of the sales tax deduction
* Deductions available to purchasers of new cars, light vehicles, RVs or motorcycles in 2009.
* Deduct state and local taxes and any excise taxes charged on the purchase.
* Available to those earning less than $125,000 ($250,000 for joint filers).
* You can deduct the sales tax on the first $49,500 of a car purchase
This deduction will be what’s known as an above-the-line deduction, which means you can take it regardless of whether you itemize other deductions on your tax return.
look here i dont know what you guys are talking about but i dont like to read very much. i got 3500 off for my trade in. then my car was taxed!
Oh man, that is just the icing on the cake...
1 - 20 of 25 Posts
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