Stimulus Package Auto Tax Deduction Expires 12/31/2009

Update! The automotive sales tax deduction expires at the end of December! Read below for details!

So here is the official release of the Economic Stimulus Package regarding auto sales tax deductions. I hope you find all of the information you need and yes this does apply to new Toyotas!

February 17, 2009
CONSUMER AUTO INCENTIVE INCLUDED IN FINAL STIMULUS BILL (H.R. 1) “AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009”
***NOTE: INCENTIVE EFFECTIVE UPON PRESIDENT’S SIGNATURE***
Today, the President is expected to sign the American Recovery and Reinvestment Act of 2009. Upon becoming law, car buyers will be permitted to deduct sales/excise tax from their yearly income tax bill for vehicles purchased before the end of this year.
What Taxes are Deductible? 1

State Motor Vehicle Sales

Local Motor Vehicle Sales

Motor Vehicle Excise Taxes
What Customers Qualify for the Deduction?

Individual customers with modified adjusted gross income of less than $125,000 or joint-filers making less than $250,000 a year in 2009 would qualify for the deduction.

Deductible as an “above the line” (for itemizers and non-itemizers) deduction on federal tax return.
Effective Date

New vehicle purchases shall apply to purchases on or after the date of enactment
(expected February 16, 2009) until Dec. 31st, 2009.
What New Vehicles Qualify for the Deduction?

Any new vehicle under 8,500 pounds gross vehicle weight.

New vehicles of any model year – when the original use commences with the taxpayer.

Any vehicle sold for under $49,500 qualifies for the full deduction. Consumers may deduct sales taxes on the first $49,500 of any vehicle sold above this price.
THIS IS A GENERALIZED SUMMARY. For more specific information on eligible customers, taxes and applicability, dealers are encouraged to consult with a qualified tax attorney or professional.
1 “For purposes of this section, the term ‘qualified motor vehicle taxes’ means any state or local sales or excise tax imposed on the purchase of a qualified motor vehicle.”- (Text of H.R. 1)
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Perception and Reality

Interstate Toyota had an interesting sales meeting this morning about perception and reality. All media reports are talking about how bad things are, our Presidential candidates are pointing out the bad things about each other, the Dow Jones is down.

I think as a consumer, all of the doom and gloom is contagious and it makes us want to hold onto our money due to a lot of uncertainty in the market place.

I looked up the definitions of Perception and Reality in Wikipedia and here is what I found.

Perception is the process of attaining awareness or understanding of sensory information. What one perceives is a result of interplays between past experiences, one’s culture and the interpretation of the perceived. If the percept does not have support in any of these perceptual bases it is unlikely to rise above perceptual threshold.

Reality, in everyday usage, means “the state of things as they actually exist”.  The term reality, in its widest sense, includes everything that is, whether or not it is observable or comprehensible.

We looked at our own perception here at Interstate Toyota and found the reality is that 90 days ago gas was over $4.00 per gallon. We also looked at our sales averages and the reality is that we have been averaging 33 cars per week since January. Also we did an average over the last 4 weeks and we are averaging 32.45 cars per week even though the sky is falling across the country.

The point of all this is it is easy to get caught up in the perception of any situation unless you step back and think about the reality.

Thoughts become things…think good thoughts!

Really Interesting News

So I was looking at an article today in Automotive News. This publication requires a subscription and is a bit of inside information about what’s going on in the industry. Hope you like it!