[Kellisanth]

Okay, so I never finished my original intent of going for Business Admin in college. Call me a professional student if anything, ‘cos I keep taking courses here and there.

If you haven’t heard, it seems the AMA has helped out the future buyers of motorcycles in regards to savings with the signing of the new economic stimulus bill.

“Specifically, motorcycles are included as “qualified vehicles” in Section 1008 of the legislation. Those purchasing a new motorcycle will be able to deduct the sales and excise taxes on their 2009 tax returns. Prior to the actions taken by the AMA and others, the deductions only applied to the purchase of a new car or light truck. “

Now, I am going to assume this would not include used motorcycles from a Dealer, but shiny NEW motorcycles. Which is a bummer, ‘cos I don’t think I can afford a EX500 new. But I might have enough for a EX250, if my stock quits tanking so that I can sell it!

*sniff*sniff*

Orig: http://www.amadirectlink.com/news/story.asp?id=627

[MattN]

Meh, so you get to deduct the sales tax from next years IRS income tax return.

Its really not that big a deal either way, sales tax on a 7k bike is around 500 bucks. give or take. And you always end up multiplying that 500 by some mystery number like 0.0125 and the result is what you get to deduct from your taxes. I obviously don’t know what next years tax code will look like, but I’d be willing to bet you may save at most a 100 bucks off your bill if your lucky… its not going to be anything significant.

[MattN]

I may have been slightly off on what I said. The tax deduction is apparently an above the line deduction which means the amount you get to deduct is dependent upon other factors such as how much you make. The more you make the less your able to deduct. I think there are a couple other factors as well like marital status etc.

[Kellisanth]

Here in Chicago, sales tax is like 10%, so any savings returned will be of much help overall.

Although I get fuzzy and confused when it comes to numbers. 😮

[MattN]

Wow…. 10% sucks…. Sorry to hear that. You may benefit a bit more from the new tax code then than others will.

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