Reminder: Tax Deduction for New Streetbikes
Reminder: Tax deduction for new streetbikes
Under the American Recovery Reinvestment Act, new vehicles purchased between Feb. 17 and Dec. 31 2009 may qualify for deductions to state and local sales and excise taxes. Qualified vehicles include street and dual-sport motorcycles, scooters, mopeds, cars, light trucks and motor homes. Motorcycles were a late addition to the stimulus bill, added after lobbying from the AMA and other groups.
At first, Congress was not going to include motorcycles in this bill, but the AMA and the associations members, along with Harley-Davidson and others, persuaded our elected representatives to go back to the drawing board and fix that oversight, says Ed Moreland, AMA vice president for government relations. Congress responded, and now motorcyclists who purchased a new bike last year can enjoy the same tax savings as those who opted for four-wheeled transportation.
To qualify, new vehicles must have a gross vehicle weight rating of 8,500 pounds or less and cost up to $49,500. Individuals can receive a full deduction if their income is less than $125,000 or $250,000 for joint filers. Deductions are phased out for taxpayers who make between $125,000 and $135,000 ($250,000 and $260,000 for joint returns).
For more information, visit the Internal Revenue Services Question and Answer page at http://www.irs.gov/newsroom/article/0,,id=211310,00.html.