teqnic

Can someone explain what the tax credits consist of on the current RX lease specials?

Thanks!

klegrow

From what I understand, there aren't any. At least none from the federal government. After all of Obama's talk, they still haven't renewed the tax credit for hybrids from 2005. Now you can do a cash for clunkers, but it isn't worth it if your trade-in is worth less than $4500, and even then you have to meet mileage requirements.

klegrow

P.S.....you may want to see if your state has their own credit.

ajs

I think you mean it isn't worth it if your trade-in is worth MORE than $4500?

klegrow

Yes, I'm sorry for the confusion....it is only worth it if your trade in is worth LESS than $4500. Basically, you can only get $4500 TOTAL between the dealer and the government. Additionally, I would check to ensure the mileage, your income, etc. meet the requirements. The government always loves to throw out these great credits, then you find out your income voids the entire thing.

4482

I know if you BUY a new car in 2009 you can take all the sales tax off when you file your IRS tax return.

kitlz

Yes, you can claim the sales tax on vehicles up to $49,500. If you go above the amount, you can still deduct the sales tax but only on $49,500. There are also income limits, $125K single, $250K couples.

LexFather

http://www.fueleconomy.gov/Feg/tax_hybrid.shtml

Only Ford/Mercury products get a hybrid tax credit. Cash for CLunkers is separate.

kitlz

Blame the overwhelmingly popular Prius. Toyota hit quota in no time

4482

Check this out: http://www.bankrate.com/finance/auto...savings-1.aspx

klegrow

Well, you can always write off your excise tax, but the sales tax is new