News Consider your 2009 motorcycle tax deduction

Consider your 2009 motorcycle tax deduction

As the new vehicle sales tax deduction nears its expiration date, shoppers looking to take advantage of the incentive should familiarize themselves with vehicle financing, says the Americans Well-informed on Auto Retailing Economics (AWARE).

The Internal Revenue Service announced in March 2009 as part of "The American Recovery and Reinvestment Act" that taxpayers who buy a new vehicle this year may be entitled to deduct state and local sales taxes and excise taxes paid on their 2009 tax returns. The tax deduction was designed to help stimulate interest in new vehicle sales.

"While tax breaks and other year-end deals like automaker rebates and incentives can make this an attractive time to buy a new car or truck, consumers should also evaluate their financial situation," says AWARE spokesman Eric Hoffman. "As with any major purchase, an incentive or sale should be weighed as part of the whole process. Those who decide to buy a vehicle should set a budget, comparison shop and understand common financing terms."

The deduction is limited to taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle made from Feb. 17, 2009, through Dec. 31, 2009, according to the IRS Web site (www.irs.gov). Taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers are eligible for a reduced credit. Those with higher incomes do not qualify. Shoppers should consult with their tax advisors about how these deductions might apply to them.

AWARE is a vehicle financing industry effort to help consumers understand how auto financing works. The group provides potential buyers of new and used autos with the tools and resources they need to successfully navigate the auto financing process. The AWARE Web site (www.autofinancing101.org) includes materials in English and Spanish.


Ron Lieback
Ron Lieback
One of the few moto journalists based on the East Coast, Ron Lieback joined the motorcycle industry as a freelancer in 2007, and is currently Online Editor at Ultimate Motorcycling. He is also the author of "365 to Vision: Modern Writer's Guide (How to Produce More Quality Writing in Less Time).

2021 Honda CRF300L and CRF300L Rally Coming To America

We told you all about the new 2021 Honda CRF300L and CRF300L Rally last month. Although we fully expected the pair to be imported...

2021 Harley-Davidson Fat Boy 114 First Look (Specs, Photos, Prices)

The distinctive Harley-Davidson Fat Boy is back for 2021, with the Milwaukee-Eight 114 powerplant and machined solid cast aluminum Lakester wheels. We tested the...

2021 Husqvarna 701 Lineup First Look (6 Fast Facts + Photos)

There are two 2021 Husqvarna 701 motorcycles to choose from—the Enduro and the Supermoto. Although they are closely related, with the same frame and...

2021 Harley-Davidson CVO Street Glide First Look (5 Fast Facts + Photos)

The 2021 Harley-Davidson CVO Street Glide is here, and it has several updates. Returning is the Milwaukee-Eight 177 V-twin powerplant that cranks out a...

Bring the Honda Solo to America: One More MiniMoto

We were poking through the archives, and this little gem re-caught our attention. The 2003 Honda Solo was part of Honda’s N Project. According...

2019 Honda CB500F Review: Enhance Your Motorcycle Passion

Perhaps I’m a bi-biker; my procrastination so far in my moto-life is whether I’m an urban chickadee or wannabe MotoGP racer. When I laid...