Trump tax reform plan
10-10-2017, 08:44 AM
#1
Pro
Thread Starter
Trump tax reform plan
I see part of the plan is eliminating state sales tax as a federal tax deduction. I’ve purchased several high priced cars the last several years and am currently thinking about buying another.
Should I make sure I buy before year end?
Should I make sure I buy before year end?
10-10-2017, 08:53 AM
#2
Team Owner
Member Since: Aug 2008
Location: Rochester NY
Posts: 31,358
Received 5,008 Likes
on
2,528 Posts
St. Jude Donor '09-'10-'11-'12-'13-'14-'15-'16-'17-'18-‘19-'20-'21-'22-'23-'24
At first I thought this was a PR&C deal but you ask a legitimate question.
My guess is that - politics being politics - that part, or maybe the whole plan, will not survive. By the time they get through wrangling you won't recognize what it started out as, and I can't imagine such a change in deduction would go over well at all with John Q. Public, regardless of which party he/she belongs to.
My guess is that - politics being politics - that part, or maybe the whole plan, will not survive. By the time they get through wrangling you won't recognize what it started out as, and I can't imagine such a change in deduction would go over well at all with John Q. Public, regardless of which party he/she belongs to.
10-10-2017, 09:29 AM
#3
Melting Slicks
Any hope for the tax plan to pass and be this year's plan is fading by the day. If I were making this decision, I would probably buy this year. My 2 cents less deductions.
10-10-2017, 10:15 AM
#5
Le Mans Master
My opinion,
expecting this congress to be able to pass any significant laws is a fool's errand.
Won't ever happen. There is no possibility of any compomise on any issue.
The senate is a dead even split. (two or three of the alleged Repubs are actually Dems)
expecting this congress to be able to pass any significant laws is a fool's errand.
Won't ever happen. There is no possibility of any compomise on any issue.
The senate is a dead even split. (two or three of the alleged Repubs are actually Dems)
10-10-2017, 10:42 AM
#6
Race Director
Member Since: Mar 2001
Location: Mustang OK
Posts: 13,845
Received 3,766 Likes
on
1,669 Posts
2023 C1 of the Year Finalist - Modified
2015 C1 of the Year Finalist
EVERYBODY needs to keep ONE THING in mind---------------------------------------------------remember, your option was Hillary!!!!!!!!!!!!!!!!!!!!!!!!!
The following 5 users liked this post by DZAUTO:
59BlueSilver (10-10-2017),
6D2148 (10-11-2017),
RJ1 (10-12-2017),
Roger Walling (10-12-2017),
sea2jet (10-14-2017)
10-10-2017, 10:45 AM
#7
Do people buy cars with taxes on their mind? I buy a car to drive and enjoy. I pay for it. I don't care about the tax aspect. I either can, or can't afford to buy the car.
Interesting.
Interesting.
10-10-2017, 10:56 AM
#8
Administrator
Member Since: Jul 2000
Location: About 1100 miles from where I call home. Blue lives matter.
Posts: 51,366
Received 5,321 Likes
on
2,770 Posts
When I was shopping for my last car, I was quite aware that my state charged 6.25% on purchases from a dealer. On a $75k car, that’s close to $5,000. There’s also municipal taxes at around another 1%.
If I bought from a private party, the tax rate is figured at a car over 10 years old and over $30,000, which is taxed at a flat rate of $1,500.
While I would not make a decision solely on a $3,500 difference, it seems unwise to me to not consider all costs in a potential purchase.
10-10-2017, 10:58 AM
#9
Melting Slicks
Member Since: Apr 2009
Location: Virginia Beach VA
Posts: 2,475
Received 574 Likes
on
321 Posts
C2 of the Year Finalist - Modified 2020
C2 of Year Finalist (performance mods) 2019
Two guys in my club were talking about the sales tax and property taxes in VA. The sales tax is 4.15% on a new car. They were saying the property tax for the first year was $2800 so on a new Z06 they were looking at $7000 in taxes the first year. Property tax only the second year. In 5 years they will pay over $10,000 in taxes.
Btw, there is no tax on my 66 and I am still paying over $500 a year on my 10 year old Z06.
Btw, there is no tax on my 66 and I am still paying over $500 a year on my 10 year old Z06.
Last edited by MarkC; 10-10-2017 at 11:00 AM.
10-10-2017, 11:07 AM
#10
Race Director
Two guys in my club were talking about the sales tax and property taxes in VA. The sales tax is 4.15% on a new car. They were saying the property tax for the first year was $2800 so on a new Z06 they were looking at $7000 in taxes the first year. Property tax only the second year. In 5 years they will pay over $10,000 in taxes.
Btw, there is no tax on my 66 and I am still paying over $500 a year on my 10 year old Z06.
Btw, there is no tax on my 66 and I am still paying over $500 a year on my 10 year old Z06.
The following users liked this post:
GTOguy (10-10-2017)
10-10-2017, 11:16 AM
#11
Race Director
It depends on your tax status. If you itemize deductions on your return instead of taking the standard deductions then you can not deduct sales tax paid. You need to look at the rules for sales tax deductions for the state you live in
10-10-2017, 11:25 AM
#13
Why wouldn’t people keep all costs in mind?
When I was shopping for my last car, I was quite aware that my state charged 6.25% on purchases from a dealer. On a $75k car, that’s close to $5,000. There’s also municipal taxes at around another 1%.
If I bought from a private party, the tax rate is figured at a car over 10 years old and over $30,000, which is taxed at a flat rate of $1,500.
While I would not make a decision solely on a $3,500 difference, it seems unwise to me to not consider all costs in a potential purchase.
When I was shopping for my last car, I was quite aware that my state charged 6.25% on purchases from a dealer. On a $75k car, that’s close to $5,000. There’s also municipal taxes at around another 1%.
If I bought from a private party, the tax rate is figured at a car over 10 years old and over $30,000, which is taxed at a flat rate of $1,500.
While I would not make a decision solely on a $3,500 difference, it seems unwise to me to not consider all costs in a potential purchase.
10-10-2017, 12:54 PM
#14
Drifting
Sales tax deductions are peanuts compared with a possible loss of real estate tax deduction, Don't look for this proposal to pass in anything close to its present form or for all portions of it to take effect immediately, Too many people who have arranged their financial affairs pursuant to the current code would be devastated by an overnight overhaul to ever allow that to occur - hence, whatever happens will have a "phase in" period.
10-10-2017, 01:14 PM
#15
Race Director
Sales tax deductions are peanuts compared with a possible loss of real estate tax deduction, Don't look for this proposal to pass in anything close to its present form or for all portions of it to take effect immediately, Too many people who have arranged their financial affairs pursuant to the current code would be devastated by an overnight overhaul to ever allow that to occur - hence, whatever happens will have a "phase in" period.
10-10-2017, 01:24 PM
#17
Burning Brakes
Aww retirement. No sales tax in Oregon and all my cars, except the pickup are over 25 years old so they are licensed as classic's. $85 one time license and registration. My 34 ft motorhome is registered, one time, as a disabled veteran.
10-10-2017, 01:36 PM
#18
Burning Brakes
If you itemize, you can generally deduct sales taxes OR state income taxes. Since you live in FL like me, there are no state income taxes to deduct.
If you itemize but haven't saved all your purchase receipts, there's a standard sales tax deduction table published by the IRS, and you can deduct the amount from the table.
Disclaimer: This is not tax advice, and you shouldn't take tax advice from random guys on the Internet.
10-10-2017, 02:57 PM
#19
Race Director
Sales tax deductions are peanuts compared with a possible loss of real estate tax deduction, Don't look for this proposal to pass in anything close to its present form or for all portions of it to take effect immediately, Too many people who have arranged their financial affairs pursuant to the current code would be devastated by an overnight overhaul to ever allow that to occur - hence, whatever happens will have a "phase in" period.
10-10-2017, 03:12 PM
#20
Melting Slicks
When I buy a car I factor in all out of pocket costs. Of course I'm not looking for that "perfect car". I'm looking for that "perfect deal".
I can actually enjoy myself more driving a less than perfect car.
I can actually enjoy myself more driving a less than perfect car.
Last edited by biggd; 10-10-2017 at 03:14 PM.
The following users liked this post:
Randy G. (10-10-2017)