Sales and Excise Tax Deduction for New Motor Vehicle

[Cheryl48]

Client purchased a 26 foot boat with motor for $48,113. He heard on TV that it qualifies for the sales tax deduction as a new motor vehicle. I can't find anything that qualifies a boat. Has anyone encountered this situation?

Thanks for your input!
C

[Burke]

The federal deduction is for new CARS. However, he may be able to add the sales tax and deduct it on Sche A if he itemizes, and his sales taxes exceed his state income taxes.

[Cheryl48]

Thank you...

Thank you... his state income tax exceeded his sales tax on Schedule A. I read the guidelines to him from TTB, told him the boat wouldn't qualify, but he was insistent that it was a motor vehicle. (They said so on TV)

I then went to the IRS site and read the guildlines again. Sending the message here helped to clear my office. Thank you, Thank you, Thank you!

[FEDUKE404]

Creative sales taxing

I think you can include motorcyles (and scooters!) and RV's for the "sales tax on cars" special treatment, but I never heard of a boat getting such.

As others noted, you might get to use that amount as an "add-on" to the optional sales tax tables, but I would have to go back and read the fine print on that aspect.

FE

[tonia2021]

Motorhomes quailfy. How about 5th wheel campers? Does it need to have an engine to be a vehicle?

[Bees Knees]

Motorhomes quailfy. How about 5th wheel campers? Does it need to have an engine to be a vehicle?

The actual law reads:

‘‘(ii) OTHER TERMS.—The terms ‘motorcycle’ and
‘motor home’ have the meanings given such terms
under section 571.3 of title 49, Code of Federal Regulations
(as in effect on the date of the enactment of
this paragraph).

Section 571.3 of title 49, Code of Federal Regulations, says:

Motor home means a multi-purpose vehicle with motive power that is designed to provide temporary residential accommodations, as evidenced by the presence of at least four of the following facilities: cooking; refrigeration or ice box; self-contained toilet; heating and/or air conditioning; a potable water supply system including a faucet and a sink; and a separate 110-125 volt electrical power supply and/or propane.

Note that it says it needs to have "motive power." Thus I believe that means it needs to have its own power to make it move. A fifth wheel camper does not have its own "motive" (motorized) power.

[EA Carol]

Golf Cart

Does the sales tax paid on a Golf car qualify for the New Vehilcle Sales Tax Deduction? The same Golf car also qualified for the "Qualified Plug-In Electric Drive Motor Vehicle Credit"

Thanks

[Burke]

There was an article floating around during tax season about some outfiit in Florida advertising as such and people taking this deduction, but I cannot verify that it is legit. It seems to meet the criteria.