I have a client that leased a car after 2-17-2009. Sales tax is included in each of the lease payments. This client does not itemize. Is the sales tax paid with each lease payment available to be added to the Standard Deduction? Sorry if already posted. I did a little searching but didn't notice this question.
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One must have bought a car, not merely rented one.Originally posted by krowland View PostChEAr$,
Harlan Lunsford, EA n LA -
Why This?
ChEAr$, is the sales tax on a leased car specifically denied anywhere?
We all know these "leases" are really "sales" that deceive the buyer into giving up his equity in exchange for a lower monthly payment...They also include "interest" but it is called "rent."
Without any knowledge to the contrary, I guess I would be inclined to claim the sales tax paid during the current year. I would have to bang my head to calculate it, but I think I could do it.Comment
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The intent of congress was to encourage sales of brand new cars, thus letting a person add the sales tax on said vehicle be added to the standard deduction even if he didn't itemize.Originally posted by Snaggletooth View Post
Here's the IRS blurb:> "In 2009, you can deduct the state or local sales and excise taxes imposed on the purchase of a qualified motor vehicle after February 16, 2009, and before January 1, 2010."
If you check schedule L you'll see that one must also record the purchase price of said
vehicle.ChEAr$,
Harlan Lunsford, EA n LAComment
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NEW Car Sales Tax Deduction
The new car sales tax deduction "above the line" deduction for those that do not itemize specifically excludes "lease vehicles"
SandyQ. Does the purchase of a used car qualify for this deduction?
A. No. In order to take the deduction, you must be the first owner of the vehicle.
Q: Does leasing a car or other vehicle qualify for this deduction?
A. No, leases and rentals do not qualify for this tax deduction. The law specifies that the deduction applies to the purchase of qualified new vehicles. A lease is not a purchase for the purpose of this deductionComment
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Leased Car
From IRS Q&A
Q: Does leasing a car or other vehicle qualify for this deduction?
A. No, leases and rentals do not qualify for this tax deduction. The law specifies that the deduction applies to the purchase of qualified new vehicles. A lease is not a purchase for the purpose of this deduction.Confucius say:
He who sits on tack is better off.Comment
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Good Answer
and cites to go along with it. Sorry to Krowland, ChEAr$, ST, and RLyman. Mine was the only dissenting voice, and wrong.
...not the first time...Comment
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