can i lease an a4 avant around 400 per month

Reply Subscribe

Thread Tools

Search this Thread

04-29-2009, 06:03 PM

#11

need_TQM

AudiWorld Senior Member

Join Date: May 2008

Location: Houston

Posts: 670

Likes: 0

Received 2 Likes on 2 Posts

Quote:

Originally Posted by lhsa

but the deduction phases out.

True -- I wish my AGI was high enough that the phase out would "hurt" me... Alas not the case -- I'll get the full benefit.

Reply Like

04-29-2009, 06:15 PM

#12

Moviela

AudiWorld Senior Member

Join Date: Mar 2009

Posts: 747

Likes: 0

Received 2 Likes on 2 Posts

Quote:

Originally Posted by need_TQM

You can deduct the sales tax from your federal taxes. The sales tax reduces your taxable income, so you don't have to pay taxes on that amount. In effect, you "get back" your tax bracket percentage of the sales tax. If you are in the 25% tax bracket and you paid 2000 in sales tax, you would not have to pay 2000*.25=$500 in taxes you would otherwise have had to pay.

http://www.irs.gov/newsroom/article/...205863,00.html

As I read this press release from the IRS, it is only for PURCHASES of new cars. In the case of a (F)lease, you are not the purchaser, the (F)leasing company is the person paying the sales tax. Some states tax (F)lease payments, so if the car is a business deduction, you can get some relief for that, but that has been the case for years.

Since I paid $2600 in sales tax, I will be delighted to get a reduction in my tax of almost $ 1,000! Thank you President Obama.

Here is an IRS transcript where it explains leases and used cars are not included in the deal.

http://www.irs.gov/irs/article/0,,id=206587,00.html

Last edited by Moviela; 04-29-2009 at 06:30 PM.