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SLK 350
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155 Posts
Discussion Starter · #1 ·
This ought to get alot of attention.

According to the new tax code/laws, if your state sales tax that you paid in 2004 exceeds the total of your state income tax and local income tax for 2004 combined, then you can take the sales tax as a deduction on your 2004 1040 long form (don't know about the EZ form), but you cannot take both the sales tax AND the state/local tax as a deduction. An added bonus is that each state has a particular 'flat amount' in lieu of receipts that you can add to the sales tax deduction (for those that didn't save any minor receipts). For example, say the slk350 was $55k @ 6% state sales tax, that comes to $3300 + $500 (for PA) for a total of $3800. That's if the only big expense was the car, if you had more than the car and it exceeds the state/local withholdings, then take that amount instead of the 'flat' addition. {the lawyer's weasel clause: This information only provided for advise and no guarantees or warranties apply. Check your local area for tax laws and concult a tax professional} THERE, I feel better!

CHA-CHING, come to papa$$$$
 

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SL550
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949 Posts
Applies to very few people on this forum...

Unless you live in a State with a relatively low tax rate (i.e. PA) or no State tax, this new sales tax vs income tax choice won't apply. Most people on this forum are paying way more than $3300 in State and local taxes.
 

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SLK 350
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2,327 Posts
Thanks for the info. I'll mention it to my accountant when he does my taxes. I really think that we should be allowed to deduct the entire cost of the car as a health expense. Owning my car sure has improved my mental health.
 

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SLK 350 MT
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148 Posts
The truly creative among us could have purchased the SLK as an asset in their 401K or 457 plan. Real estate and collectibles may be structured into some retirement holdings. Just be careful not to rack up outrageous mileage.
 

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So is the SLK350 real estate or a collectible? Do you have to put it up on blocks to make it one with the land? Do you have to park it in your living room to qualify as a collectible?
 

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SLK 350 MT
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148 Posts
check out your particular plan for definitions and exclusions. big corporations tend to exclude real holdings, offering only safe investments like worldcom , tyco and internet funds. [;)]
 
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