Sales tax
 

I had read that if you bought a new motorcyle or car in 09 you could deduct the sales tax. So, I broke out the contract and where the sales tax was supposed to be it had a big fat zero. Went to the dealer and a salesman (mine was not there) said that somehow because I had traded in two bikes I didn't pay sales tax or the trade ins zero'ed it out somehow. Not sure how that worked but looks like I won't be deducting the new bike from my taxes like I thought.

That sucks...

i believe there is somthing there that works that way. Cause when i traded in my 03 truck for an 06 colbalt i was money ahead and had a clear title thought i was going to get an $800 check back to then the sales manager came out said got good news your check is going to be for $1500 i didn't realize you had a clear title on the trade and keeps tax's simple and paperwork for no banks.

You can still deduct the registration fees and taxes paid on that.

Thanks for the responses. I appreciate it. I just hadn't heard of this before. Almost felt like I got hosed somehow. Oh well, been hosed before if that's the case!

How can you deduct something you didn't pay? In Michigan, "hosed" means you pay sales tax from dollar one on the unit price and don't get any sales tax credit for the trade.

info:
http://taxes.about.com/od/deductions...-deduction.htm

quoted:
"For 2009 only, individuals can deduct sales tax paid on the purchase of a new vehicle. The deduction is available for cars, trucks, motorcycles, motor homes and recreational vehicles. The vehicles must be purchased after February 16, 2009, and before January 1, 2010 to qualify for the deduction."

also, you can always deduct the ad valorem tax for all your registered vehicles (shown on your registration card), i do that every year.

In some states, like PA where I live, sales tax is calculated on the difference between the value of your trade and the sale price of the new vehicle.
If you have zero sales tax on your invoice, it means that your trade(s) represented as much as the new bike you bought, which is kinda strange but maybe that's the case.
I don't see why a dealership would take a bike on trade for a new bike and not generate any money at the end. Strange indeed, but what do I know........

Frenchbiker, are you sure you're not the guy who did the paperwork? Your response sounded just like he did today when I asked. At any rate, I actually traded in two Harleys which might answer the question better. Oh well, I sure like the new one! And I was just kidding about you being the same guy. I know you aren't.

Because a trade in is going to almost always be 100% profit, or near that, when they sell it.