New Tax Law - Writing off sales tax gone

[dexters]

Originally Posted by rdvan

First, this has nothing to do with politics so lets keep it that way. The new Tax Reform bill according to several tax professionals (CPA's, etc). will do away with the ability to write off sales tax paid on motor vehicles that has been available in many states,

The increase in the standard deduction and lower corp tax rate will save you much more $.

[rdvan]

Originally Posted by wnytaxman

If I may suggest a fall back position that may work. I assume you have made a substantial downpayment on the unit. The dealer may be willing to show that downpayment as being the sales tax on the final sale. That would give you the deduction this year and you would have an invoice showing the sales tax paid in 2017.

Now there's an ideal, or is it idea? Any tax pros out there that want to way in?
Looks like to me they could be holding the earnest money as the prepaid tax unless there is some tax law that keeps you from prepaying tax. Hmmmm...........

R. D. Vanderslice
2018 New Aire 3341 on order

[rdvan]

Just a quick note. I have been dealing with National Indoor ever since they opened their doors and with some of the principals when they were doing business under the Buddy Gregg banner. I like NIRV and do not in any way blame them for something that may or may not occur. I think they have been very upfront on all their dealings with me, but Newmar kept changing the dates. Not NIRV's fault. This is a complicated issue and the longer the Government is throwing around the possible changes the later it should be before they are implemented. Like someone noted, for tax planning purposes their should be a drop dead date to get your affairs in order. Tax planning on pure speculation makes it hard. But, $6,000 could be very real and some people put things like this into their purchasing decision calculations. Thanks gang for all of your input.
R D Vanderslice
2018 New Aire 3341 on order (hopefully before 2019 .
Present 2017 Leisure Travel Unity MB
Past - Several Class A's including Country Coach and Tiffin Bus

[Dutch Star David]

Originally Posted by rdvan

First, this has nothing to do with politics so lets keep it that way. The new Tax Reform bill according to several tax professionals (CPA's, etc). will do away with the ability to write off sales tax paid on motor vehicles that has been available in many states, including Texas for the tax year 2018. I bought my new Newmar from National Indoor RV in Lewisville, Texas in October taking a New Aire that was supposedly scheduled to be delivered December 13. I bought from National Indoor RV purposely due to them having a unit to be delivered (supposedly) around December 13 and was even told that they usually come in a little earlier than the projected arrival date. This would allow me to take advantage of the current tax law thus saving approximately $6,000 income tax due to being able to write off the sales tax. Then later, after paying the earnest money to get this unit, I was told it would not be here until mid January, thus making the new coach cost me an extra $6,000 I was not anticipated. I am very unhappy about this revelation, to say the least. Is anyone else in this situation? I felt good about the whole buying process up to that point and until I was told that this very well could have been a ploy to get me to "sign on the dotted line" and that the dealer knew that the coach would not be delivered in December. Anyone else run into this scenario or similar? Thanks.
R D. Vanderslice - Rockwall, Texas
2018 Newmar New Aire - previous due date mid December, now mid Jan.

Sales tax was never a credit off your federal taxes. You may lose $6,000 of itemized deductions if your other itemized deductions exceed the new $24,000 standard deduction and you itemize. Even at today's highest rate, your additional tax will be less than $3,000.

[wildtoad]

Originally Posted by ewlee

The annual basis is 6% x a millage rate for a 2nd home. Currently the millage rate in Beaufort County is around .25. So the personal property tax is actually 1.5% of assessed value.

And you are correct. Still can be a big number for a number of years.

[rdvan]

Originally Posted by dlovitt

Sales tax was never a credit off your federal taxes. You may lose $6,000 of itemized deductions if your other itemized deductions exceed the new $24,000 standard deduction and you itemize. Even at today's highest rate, your additional tax will be less than $3,000.

dlovitt,
"Tax credit" was never mentioned, but that would sure be nice. Also, you have a valid point and I'm amazed at how little some people know about taxes. But, it's understandable if you don't have to write the check each quarter your self. You think you're doing really well and then you have to fill out the 1040 ES form. The $6,000 figure is correct, but then we could get into things called "marginal" tax rate and on and on. $24,000 standard deduction? At the end of the day I don't see any tax relief here though. Sounds good, but somebody has to pay. But, I count my Blessings one by one..................... Some of you know what I am talking about.
Thanks for your input.
R. D. Vanderslice
2018 New Aire 3341 - due sometime in 2018, hopefully
Present - 2017 Leisure Travel Unity MB
Past - Several Class A's, Country Coach, Tiffin, etc.

[wa8yxm]

Alas I can not post my true feelings on this topic here.. For reaons stated in the original post.

But thankfully I'm not planing any major purchases any time soon,.

[Winemaker2]

If the tax law changed in your favor and for some? reason you ended up SAVING on your taxes would you feel compelled to refund it or even half of it to the dealer or mfg???

I doubt there was any guarantee on a delivery date??

[Grn_Mtn_Boy]

You might be able to conclude the purchase in Dec even though the coach is still in process. Get the c of o, they should already have the vin, pay them the balance, get it registered and insured. Just a thought.

[dexters]

In Hong Kong everyone, including corporations pay a 20% income tax rate with only a small deduction for rent and individual deduction.

Everyone thinks it is fair and no one complains.

In the USA, the tax law is interwoven with social objectives.

[Dutch Star Don]

"dexters"......Nicely and POLITELY stated!

[We_B_Tripn]

Originally Posted by Dutch Star Don

"dexters"......Nicely and POLITELY stated!

Agreed.

[Grn_Mtn_Boy]

Originally Posted by rdvan

dlovitt,
"Tax credit" was never mentioned, but that would sure be nice. Also, you have a valid point and I'm amazed at how little some people know about taxes. But, it's understandable if you don't have to write the check each quarter your self. You think you're doing really well and then you have to fill out the 1040 ES form. The $6,000 figure is correct, but then we could get into things called "marginal" tax rate and on and on. $24,000 standard deduction? At the end of the day I don't see any tax relief here though. Sounds good, but somebody has to pay. But, I count my Blessings one by one..................... Some of you know what I am talking about.
Thanks for your input.
R. D. Vanderslice
2018 New Aire 3341 - due sometime in 2018, hopefully
Present - 2017 Leisure Travel Unity MB
Past - Several Class A's, Country Coach, Tiffin, etc.

I don't understand this comment that there is no tax relief here. If referring to the increase in the standard deduction, I and 80 % of Americans who don't itemize will see substantial tax relief.

[dexters]

Originally Posted by Grn_Mtn_Boy

I don't understand this comment that there is no tax relief here. If referring to the increase in the standard deduction, I and 80 % of Americans who don't itemize will see substantial tax relief.

Google can help you from making such mistakes ...
https://taxfoundation.org/who-itemizes-deductions/

30.1 percent of households chose to itemize their deductions (44 million returns).
68.5 percent of households chose to take the standard deduction (101 million returns).
1.6 percent of households had zero or negative adjusted gross income, and were unable to take any deductions. (2 million returns)