Quick question: If you are buying a new car w/ the CFC rebate, how do they compute sales tax and reg fees? Do they apply the rebate first, then compute the tax? Or compute the taxes before the CFC?
sales tax on Clunker
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thge money for the c4c car is included in sales tax. it is actually considered income.
Originally Posted By: bdcardinal
thge money for the c4c car is included in sales tax. it is actually considered income.
Huh??? Actually the clunker rebate works just like a factory rebate as far as sales tax credit. So yes you do get tax credit for the clunker rebate....at least in Texas anyway.
thge money for the c4c car is included in sales tax. it is actually considered income.
Huh??? Actually the clunker rebate works just like a factory rebate as far as sales tax credit. So yes you do get tax credit for the clunker rebate....at least in Texas anyway.
So you're saying it should be like this:
$20,000 car
-$3,500 rebate
$1,320 8% tax (8% of 16500)
Is that right?
$20,000 car
-$3,500 rebate
$1,320 8% tax (8% of 16500)
Is that right?
It depends on what state you are in. The lowlifes here in Nevada charge sales tax on the gross price of the car when a rebate is involved. In the case of a trade-in, there is a partial credit on the sales tax for the value of the trade-in.
This web site should shed some light on the tax incentives for new vehicles in 2009.
2009 new car tax credit.
2009 new car tax credit.
Originally Posted By: tonycarguy
So you're saying it should be like this:
$20,000 car
-$3,500 rebate
$1,320 8% tax (8% of 16500)
Is that right?
Yes that is correct for TX but I believe a lot of other states are the same. Sale price minus rebates times state tax rate.
So you're saying it should be like this:
$20,000 car
-$3,500 rebate
$1,320 8% tax (8% of 16500)
Is that right?
Yes that is correct for TX but I believe a lot of other states are the same. Sale price minus rebates times state tax rate.
I'd suggest negotiating a sale price on the car before even telling them that you have trade-in CFC. The money is essentially free to them so they are really giving you zero trade-in value out of their pockets so is shouldn't be a factor in their sale price. Normally, they combine both number to see how much profit they will get, but in this case the government is really giving you money to spend and mandating that you spend it on a car.
If the dealer will do, for example, $200 over invoice, they should be able to do that price before the trade-in and then you get to drop that price by the CFC value. Normally, the trade in counts against the dealer if they give you more than it's worth, but with CFC that's not the case.
If the dealer will do, for example, $200 over invoice, they should be able to do that price before the trade-in and then you get to drop that price by the CFC value. Normally, the trade in counts against the dealer if they give you more than it's worth, but with CFC that's not the case.
We paid no tax on the cfc "trade" portion.
Originally Posted By: ArrestMeRedZ
It depends on what state you are in. The lowlifes here in Nevada charge sales tax on the gross price of the car when a rebate is involved. In the case of a trade-in, there is a partial credit on the sales tax for the value of the trade-in.
Ditto Arkansas. The rebates are added back to the sale price and the whole transaction, less the trade, is taxed at 6%. I've even had them charge me sales tax on the gas guzzler tax. Trades are not taxed.
I haven't tagged the new Torrent yet, but the old Blazer, potentially a C4C, is listed as a trade, so it won't be taxed.
Sales tax for new cars purchased in calender year 2009 is deductible, IIRC, as the original auto stimulus package.
It depends on what state you are in. The lowlifes here in Nevada charge sales tax on the gross price of the car when a rebate is involved. In the case of a trade-in, there is a partial credit on the sales tax for the value of the trade-in.
Ditto Arkansas. The rebates are added back to the sale price and the whole transaction, less the trade, is taxed at 6%. I've even had them charge me sales tax on the gas guzzler tax. Trades are not taxed.
I haven't tagged the new Torrent yet, but the old Blazer, potentially a C4C, is listed as a trade, so it won't be taxed.
Sales tax for new cars purchased in calender year 2009 is deductible, IIRC, as the original auto stimulus package.
I was going to let you guys know more about the cash for clunkers program and the states, for your "education", but I just realized that the censors on this site may think that it could be considered "political" when it is not, so I can't comment. Darn those pesky censors.
Hey guys thanks for giving such insightful information about the taxes being charged by the various states for the cash for clunkers program!!!!!!!
Looks like I will be very busy and fully employed...lol
Looks like I will be very busy and fully employed...lol
Just to be safe...send all of your money to the IRS
Originally Posted By: PT1
Just to be safe...send all of your money to the IRS
No to make it easier they will just take it all. Then send you what they think you "need"...
Just to be safe...send all of your money to the IRS
No to make it easier they will just take it all. Then send you what they think you "need"...
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