Tax Credits

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Aug 10, 2009 | 05:54 PM

teqnic

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From: Texas

Tax Credits

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

Thanks!

Aug 11, 2009 | 11:32 AM

klegrow

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From: MA

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.

Aug 11, 2009 | 11:33 AM

klegrow

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From: MA

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

Aug 11, 2009 | 01:09 PM

ajs

Driver

Joined: Apr 2009

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From: AZ

Quote:

Originally Posted by klegrow

Now you can do a cash for clunkers, but it isn't worth it if your trade-in is worth less than $4500

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

Aug 11, 2009 | 01:36 PM

klegrow

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From: MA

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.

Aug 11, 2009 | 02:16 PM

4482

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Joined: Mar 2004

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From: Ohio

Quote:

Originally Posted by teqnic

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

Thanks!

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.

Aug 11, 2009 | 03:19 PM

kitlz

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Joined: Jul 2009

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From: NJ

Quote:

Originally Posted by 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.

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.