A lot of people probably backed out after putting deposits at multiple deposits.
wow chitty, that DOES help. the tax break might not be as crucial as i expected. how do you know my salary and state sales tax? lol. you pretty much have it spot on.IMHO, no xenons would be a dealbreaker for me.
The sales tax thing that ends dec 31 is a deduction not a credit. In other words, you don't get the full amount back. You do pay it upfront and when you're doing your taxes you deduct the amount of state sales tax you paid from income.
This is not tax advice, this is just my non-accountant understanding of how it works.
As an example, assuming $45,000 income, 25% fed tax bracket, and 7% state sales tax, your fed income tax would be $7,437. If you paid 1,820 of sales tax on the car you would deduct that from 45,000 of income and pay 6,982 of income tax. Tax savings: 455.
2nd, this is correct. I use turbotax and it shows you the breakdown of your deductions.IMHO, no xenons would be a dealbreaker for me.
The sales tax thing that ends dec 31 is a deduction not a credit. In other words, you don't get the full amount back. You do pay it upfront and when you're doing your taxes you deduct the amount of state sales tax you paid from income.
This is not tax advice, this is just my non-accountant understanding of how it works.
As an example, assuming $45,000 income, 25% fed tax bracket, and 7% state sales tax, your fed income tax would be $7,437. If you paid 1,820 of sales tax on the car you would deduct that from 45,000 of income and pay 6,982 of income tax. Tax savings: 455.
wow chitty, that DOES help. the tax break might not be as crucial as i expected. how do you know my salary and state sales tax? lol. you pretty much have it spot on...So regardless of whether I purchase the DSG Golf in 2009 or 2010 I will still be eligible for the Lean Burn $1700 credit, correct? It isn't contingent on the year of purchase, but the year of make, right?