Buy a Ford Flex – Save on Taxes!
Feb 10th, 2009 by gmoran
That’s right. With a penstroke today in Colorado, President Obama signed into law significant savings for new car buyers on purchases made before Dec. 31. There isn’t much of a catch. The deduction is limited to sales tax on purchases of up to $49,500 for single people with adjusted gross income of more than $125,000, and married taxpayers whose AGI exceeds $250,000. Let’s say you splurge a little and buy a fancy Ford Flex for $32,000. If you live in New York State and the sales tax is 8%. Your tax is $2560. That is deducted from the amount you make even if you don’t itemize your deductions. If your tax rate is 20%, you will get back $512 more dollars in your refund. In other words, like a business with deductions for expenses, you are not being taxed on the money you had to earn to pay the sales tax on your new Ford Flex. You have to buy it before Dec. 31 – Ford needs the money now!