Anyone try to deduct $3000 guzzler tax on Schedule A?

[Lawrenzo]

This is the first car that I'm thinking of purchasing that has the $3000 "penalty" tax. Looking over my tax booklets it seems that it kindof fits into a grey area. The law states that we can't deduct for tax paid on gasoline, yet this guzzler tax isn't really based upon our consumption. If I bought the car and put it in storage- never buying gas for it- I'd still have to pay! It's a tax tied to the ownership and use of personal property, and not at all based upon our incomes.
Anyone ever dig deeper into this or the luxury tax for that matter?
Considering the miles the average Viper owner puts on in a year this "double taxation" on what could amount to 400-500 gallons a year is a bitter pill to swallow. Do the behemoth SUV's have to pay as well??
I just looked it up and the huge SUV's don't pay any guzzler tax-what gives. Every soccer mom in OC drives these 10mpg giants all around town- probably putting 20,000 miles a year on it to boot! When was this tax passed, and how!!!!!!

<FONT COLOR="#ff0000" SIZE="1" FACE="Verdana, Arial">This message has been edited by SSunburn on May 01, 2001 at 01:07</font>

 

[jcaspar1]

Won't fly. To deduct the tax it must be based on the value of the vehicle and be levied yearly.

 

[Ulysses]

Luxury tax and Gas Guzzler tax are not tax deductible.

Who voted for this crap anyway? Thank God Luxury Tax is phasing out.

Let's see, we'll tax you just because you bought it, then we'll tax you because you CAN buy it and it's expensive, then we'll tax you because it uses up a lot of gas which, by the way, we're taxing you up the wazzoo for already!!!

Yeah... I have an issue with taxes...and yeah... I've already written my representatives

 

[RoyV101621]

You are taxed on your ability to pay, not on, your fare share is...

 

[Chuck 98 RT/10]

You guys are all right on. All these taxes do is put things out of reach for people who could have otherwise afforded it. The money goes into the black hole of government.

Keep writing the reps.

 

[Ulysses]

I know this is off topic, but it does follow the thread.

There's been a lot of controversy and media attention on the AMT tax lately, a rather outdated tax which was meant to catch the rich but is now catching a large amount of middle income Americans. A lot of us get paid in stock options rather than bonuses or pay raises, or for working extra hours. For maximum tax benefit, they have to be excercised and held for a year. This means you have to pay taxes on them BEFORE you have realized any gain based on the difference between the strike price and the market value at the time of excercise. A lot of people got caught holding the bag when the stock market fell, essentially owing ridiculous amounts of money on stock that is worthless.

So, for you folks in that situation, a bill was introduced into the house of representatives this month, H.R. 1487, and is currently in the house of weighs and means. This bill will move AMT tax from date of excercise to date of sale. I suggest that you write your congressman and your representatives and urge them to pass this bill.

More info on HR 1487 can be found at www.thomas.loc.gov