Auto Sales tax to standard deduction

[thomtax]

I am reasonably sure of the answer and cannot find anything different for cash basis payer, but at this time stranger things have happened.

Client bought new car in December. Did not pay sales tax and get tags for new car until second week of January, 2010. Does anyone know of a loophole that would allow this to be deducted in 2009?

Thanks,
LT

[S T]

Dealer Contract

What does the New Car Dealer Contract have recorded as date purchased?

Is it that sales tax is paid through the New Car Dealer Contract, and then one of those States that the t/p also has to pay an add'l excise tax and registration fee? I had one of those in Massachusetts, but all transpired in the same tax year.

Sandy

[ChEAr$]

I am reasonably sure of the answer and cannot find anything different for cash basis payer, but at this time stranger things have happened.

Client bought new car in December. Did not pay sales tax and get tags for new car until second week of January, 2010. Does anyone know of a loophole that would allow this to be deducted in 2009?

Thanks,
LT

Sounds like a common situation here. Taxpayer buys a car in Columbus, GA, but
since he's a resident of Alabama has to pay sales tax over here when he registers
the car. If he bought the car in December but didn't register it until January 2nd,
the car registration will reflect that fact and therefore no sales tax deduction on
schedule A or schedule L.

[thomtax]

What does the New Car Dealer Contract have recorded as date purchased?

Is it that sales tax is paid through the New Car Dealer Contract, and then one of those States that the t/p also has to pay an add'l excise tax and registration fee? I had one of those in Massachusetts, but all transpired in the same tax year.

Sandy

In Arkansas, the dealer gives you the title and you have a month to take to the Dept of Finance & Admin to register, pay sales tax and buy tags. He said that he wanted to go get it taken care of when he got the car and everyone kept telling him to wait and save his money for a month. His wife said "It's my fault, I talked you out of it".

LT

[thomtax]

Sounds like a common situation here. Taxpayer buys a car in Columbus, GA, but
since he's a resident of Alabama has to pay sales tax over here when he registers
the car. If he bought the car in December but didn't register it until January 2nd,
the car registration will reflect that fact and therefore no sales tax deduction on
schedule A or schedule L.

This is what I told them, but since IRS has been playing some many games on things lately, I thought I would check to see if someone knew of some loophole.

Thanks,
LT

[ChEAr$]

Just this morning client called. She knew about the sales tax deduction for the new car
she bought last year, but was asking abut the extra $3,000 to be refunded. She said she
had heard it from numerous sources who had heard it from several CPA's hereabouts.

Having in mind electric vehicles and hybrids, I asked her what kind of car. Buick something
or other, totally gasoline engine of course.