Lol, did you expect the DMV to be anything else? Good idea on starting the list.
Tax exemption/credit, cash 4 clunkers, and stimulus credits/exemptions article is up
I went to the DMV and the retards didn't have a clue about the high mileage sales tax exemption. Therefore, I have started a list (with official references so you can print them out and bring them to the DMV) of known state and federal sales tax exemption/credits.
There may even be local town tax situations, if you are aware of these, please post it here so that others may benefit. You can view the article here:
http://www.myturbodiesel.com/1000q/TDItaxcredit.htm
I also added references and notes in the new owner's checklists and TDI buying guide overview.
Please read the whole thread since there are many updates.
As of July 1, 2009, my estimate of TDI sold so far is 25,000 out of 60,000 that can qualify for the full tax credit.
There may even be local town tax situations, if you are aware of these, please post it here so that others may benefit. You can view the article here:
http://www.myturbodiesel.com/1000q/TDItaxcredit.htm
I also added references and notes in the new owner's checklists and TDI buying guide overview.
Please read the whole thread since there are many updates.
As of July 1, 2009, my estimate of TDI sold so far is 25,000 out of 60,000 that can qualify for the full tax credit.
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You'd think they would have a clue since the hybrid exemption is on the same document. I know CT is a popular TDI state, I doubt most know about this.
Exactly what is the AMT? I'm not a tax person?
They have feelings tooI went to the DMV and the retards didn't have a clue about the high mileage sales tax exemption. Therefore, I have started a list (with references so you can print them out and bring them to the DMV) of known state and federal sales tax exemption/credits.
As far as I've heard, the federal tax credit doesn't apply if you have to pay AMT. Most people don't pay AMT, it's mostly for higher earners.
http://en.wikipedia.org/wiki/Alternative_Minimum_Tax
Another note - the federal tax credit is limited to the first 60,000 cars, I think it goes down or goes away after that. VW estimates about 30% of sedan and 50% of wagons sold in 2008 were TDI. I don't know how much of that was the intial rush after TDI weren't sold for model year 2007/2008 but I'm guessing that it died down after the intial rush. There should be enough spots left until the end of the year. The uncertain economy isn't helping car sales but TDI seem to be doing OK.
Great idea! Even though it's not a prius they still sold a lot. VW isn't hurting like Toyota. Considering that there's still almost no stock on wagon TDI I don't know why they don't make more wagons.
Because it's VW! That's just how they do things. That's why all wagons have been so rare over the years.Great idea! Even though it's not a prius they still sold a lot. VW isn't hurting like Toyota. Considering that there's still almost no stock on wagon TDI I don't know why they don't make more wagons.
As stated by ccduff here: http://www.myturbodiesel.com/forum/showthread.php?t=1617
, the American Recovery and Reinvestment Act of 2009 provides a deduction for state and local sales and excise taxes paid on the purchase of new cars like the TDI through 2009. I heard about it but didn't connect 2+2. The article is now updated.
, the American Recovery and Reinvestment Act of 2009 provides a deduction for state and local sales and excise taxes paid on the purchase of new cars like the TDI through 2009. I heard about it but didn't connect 2+2. The article is now updated.
Page is updated again to include the Consumer Assistance to Recycle and Save Act aka. cash for clunkers:
Summary of added content: This is a US stimulus program that gives you a $4500 credit voucher towards the purchase of a new vehicle when you trade in your car that meets all of the following criteria:
Summary of added content: This is a US stimulus program that gives you a $4500 credit voucher towards the purchase of a new vehicle when you trade in your car that meets all of the following criteria:
- You must have registered and insured the vehicle for at least 1 year - this disqualifies purchases of old cars to take advantage of this stimulus.
- The vehicle must get less than 18 mpg combined city/hwy and must be a 1981-2001 model.
I try to keep as much commentary as possible out of the FAQ article as possible (just the FACTs in the FAQ), so here are my personal thoughts:
While this bill is great for TDI, it's really a joke because the Hummer H3 could qualify for this bill if your current car gets low enough mileage. (The H3 gets 16 mpg combined, if your car gets 14 mpg you qualify for the voucher). This program is designed to help US automakers and dealers but it's really the US big 3 who need help. In addition, while stimulus is needed to raise consumer spending (a major portion of the economy), the voucher money that goes to the dealer is from taxpayer money. It should be bundled in the loans to the automakers instead. FAIL.
More fail: they did almost nothing to shift buyers towards more fuel efficient cars. Since the max mileage a qualifying vehicle can get is 18 mpg, that means you can go out and buy a 20 mpg SUV. A car that gets 18 mpg can be replaced with one that gets 22 mpg and that's average, not great. Instead of the first step requiring a 4 mpg increase in passenger cars, an 8 mpg will get people into fuel efficient cars.
In other words, prorate the credit (with a minimum mpg increase requirement) to match the fuel economy difference instead of giving a $3500 credit for only 4 mpg increase and $4500 for 10 mpg increase.
While this bill is great for TDI, it's really a joke because the Hummer H3 could qualify for this bill if your current car gets low enough mileage. (The H3 gets 16 mpg combined, if your car gets 14 mpg you qualify for the voucher). This program is designed to help US automakers and dealers but it's really the US big 3 who need help. In addition, while stimulus is needed to raise consumer spending (a major portion of the economy), the voucher money that goes to the dealer is from taxpayer money. It should be bundled in the loans to the automakers instead. FAIL.
More fail: they did almost nothing to shift buyers towards more fuel efficient cars. Since the max mileage a qualifying vehicle can get is 18 mpg, that means you can go out and buy a 20 mpg SUV. A car that gets 18 mpg can be replaced with one that gets 22 mpg and that's average, not great. Instead of the first step requiring a 4 mpg increase in passenger cars, an 8 mpg will get people into fuel efficient cars.
In other words, prorate the credit (with a minimum mpg increase requirement) to match the fuel economy difference instead of giving a $3500 credit for only 4 mpg increase and $4500 for 10 mpg increase.
This all politics. Democrats favor labor the UAW and this will save them. Elections are coming up and the reason this bill doesn't favor fuel efficiency is because the Big 3 have lots full of unsold SUVs that.
You could buy a Corvette with this thing,lol! It's rated at 26 mpg highway and hypermilers have gotten 30 mpg! Light weight + an engine that's basically idling on the highway = fuel economy.
If you're driving a car whose resale is under about $4000 (otherwise you would would just sell the car yourself instead of junking it), could you even afford a brand new car before the end of the year? Most of the people who have the disposable income to buy a car just because it's on sale probably aren't driving in $4000 cars.
Sure they are. It's their second vehicle or this is for people who were waiting to buy and now have an excuse. Since new cars sales are depressed, used car prices are also lower, so the number of cars worth $4500 or less is greater.If you're driving a car whose resale is under about $4000 (otherwise you would would just sell the car yourself instead of junking it), could you even afford a brand new car before the end of the year? Most of the people who have the disposable income to buy a car just because it's on sale probably aren't driving in $4000 cars.
More major updates.
Just to clarify something: for 2009, if you have to pay AMT the $1300 credit can be applied. This was not the case for 2008.
Also added a disclaimer and this note: this website is not responsible for your tax situation as each situation is different. Consult your tax attorney or accountant for details. Do not trust the dealer or salespeople when it comes to tax advice. Unlike most internet hearsay, this page features direct links to references.
Just to clarify something: for 2009, if you have to pay AMT the $1300 credit can be applied. This was not the case for 2008.
Also added a disclaimer and this note: this website is not responsible for your tax situation as each situation is different. Consult your tax attorney or accountant for details. Do not trust the dealer or salespeople when it comes to tax advice. Unlike most internet hearsay, this page features direct links to references.
Thank you for the hard work, yoiu get a dancing banana! :nana2:
Thanks, I try to keep the FAQ updated. Someone on another forum was still saying that AMT was a factor, the stimulus bill changed that. Even still, I am not a tax attorney and cannot keep up with all the changes...but I try.
For the record, CARS (the Cash for Clunkers law) does provide for vouchers for leased cars as well, but the lease must be for 5 years.
Thanks, confirmed and added to the article. Specifically, the least must be for at least 5 years. I've proofread this article carefully to be as clear as possible. Even still, it's not an offical source so references are all linked.For the record, CARS (the Cash for Clunkers law) does provide for vouchers for leased cars as well, but the lease must be for 5 years.
The government also set up a telephone help line for cash for clunkers, linked through the article.
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