Our friends at the American Motorcycle Association sent out a press release to remind folks that some new motorcycle/scooter purchases in 2009 qualify for a tax deduction:
Don't forget to claim federal tax deduction if you bought a new on-highway motorcycle in 2009
PICKERINGTON, Ohio -- The American Motorcyclist Association (AMA) is reminding riders that they may be eligible for a federal tax deduction on their 2009 taxes if they bought a new motorcycle last year.
The American Recovery and Reinvestment Act -- a landmark $787 billion economic stimulus package that President Barack Obama signed into law in February 2009 -- provides a deduction for state and local sales and excise taxes paid on the purchase of qualified new vehicles from Feb. 17 through Dec. 31, 2009. Qualified new vehicles include street and dual-sport motorcycles, scooters, mopeds, cars, light trucks and motor homes.
"At first, Congress was not going to include motorcycles in this bill, but the AMA and the association's members, along with Harley-Davidson and others, persuaded our elected representatives to go back to the drawing board and fix that oversight," said AMA Vice President for Government Relations Ed Moreland. "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."
Eligible vehicles must have a gross vehicle weight rating (GVWR) of 8,500 pounds or less, and cost less than $49,500. Individuals can take the full deduction if they make less than $125,000, or $250,000 for joint filers. The deduction is phased out for taxpayers with income between $125,000 and $135,000 ($250,000 to $260,000 for a joint return). Individuals don't have to itemize to claim the deduction.
To illustrate the impact of the tax deduction, consider the case of a new motorcycle purchase of $10,500. For a 7.5 percent sales tax rate, the tax would be $787.50. The purchaser takes this deduction on the federal income tax form, reducing their taxable income by $787.50. Sales and excise taxes vary by state, so the actual savings will depend on the taxpayer's state and tax rate.
To read the Internal Revenue Service "Questions and Answers" about the deduction, go to IRS.gov or www.irs.gov/newsroom/article/0,,id=211310,00.html.
About the American Motorcyclist Association
Since 1924, the AMA has protected the future of motorcycling and promoted the motorcycle lifestyle. AMA members come from all walks of life, and they navigate many different routes on their journey to the same destination: freedom on two wheels. As the world's largest motorcycling rights organization, the AMA advocates for motorcyclists' interests in the halls of local, state and federal government, the committees of international governing organizations, and the court of public opinion. Through member clubs, promoters and partners, the AMA sanctions more motorsports competition and motorcycle recreational events than any other organization in the world. AMA members receive money-saving discounts from dozens of well-known suppliers of motorcycle services, gear and apparel, bike rental, transport, hotel stays and more. Through its Motorcycle Hall of Fame Museum, the AMA preserves the heritage of motorcycling for future generations.