Re: Let\'s talk TAXES!
I don't mean to sound condescending, but there's a fundamental misunderstanding of taxes in this thread. My background is in Federal Income Taxes, so I'm something of an expert on the subject.
Rule #1: Taxes do not have to make sense, be logical, or even be consistent. The rules are drafted by congressional committees for several purposes (raise revenue, encourage/discourage certain behavior, get re-elected, etc.), they are implemented and interpreted by the Treasury Department and the court system, and collected and enforced (and sometimes interpreted) by the IRS.
Rule #2: Tax laws should not be perceived as fair or unfair. They are more like the weather - they just are what they are. If you're patient, sometimes they change, but there's not much you can do about them.
Rule #3: You can do what you want on your own tax return (although your advisor/preparer may refuse to sign it if they believe you want to do something not permitted by the rules), but recognize that if you go around breaking the rules then not only will you have to pay the tax if you get caught, but you will also have to pay penalties (some equal to 100% of the tax owed) and interest on underpayments. If you're really naughty, you can have your assets seized and go to prison.
Don't belive any of that crap that so-called "tax protesters" espouse about not having to pay income taxes if you never file a return, wages aren't income and other nonsense. All of those guys that have gotten some level of attention writing books and conducting seminars ends up serving time in Federal Prison. They don't let you drive a Viper while you're there, I've heard.
GGT is a Federal Excise Tax. None of these taxes are deductible on a Form 1040, 1040A, or 1040 EZ (the Federal Individual Income Tax Return). That is the law. Under certain circumstances, some of these excise taxes that are collected may be used as a *credit* against your income tax. For example, the Federal Excise Tax on gas and diesel fuel may be creditable if you use the fuel for off road purposes, like a farm tractor or a generator. But the GGT is not one of those.
I started another thread back in the summer about dealers collecting state sales tax on GGT. In Texas, at least, that is improper and the accounting departments at dealers that do this don't understand the rules. If you paid sales tax on your GGT, chances are that you're entitled to a refund. You have to file a claim for it, which is a pain, but in Texas it's about $190 so you have to decide if it's worth it.
The GGT on the Viper definitely *****, especially given the purpose of the rule and how the amount of the GGT is actually calculated vs. the reality of how many miles the average owner drives his/her Viper. Currently, however, it's a fact of life if you want to buy a new one. I'm sure the auto industry has done what lobbying they could to pare back the GGT as much as possible, so I don't imagine Viper owners could do much better.
