mrpc12

Mooty:

I think I have the same affliction (addiction). I have been through about 40+ cars since 1999. That averages out to about 6 cars a year or 1 every 2 months. Yikes! The only new loophole I have found is that you can now deduct the sales tax from your income tax on car purchases. Therefore, buying vs. leasing may be better. If you flip enough cars in the same tax year then you can write off allot of sales tax.

mooty

i am not worthy, i only gone through maybe 10-12 cars so so from 2002. you are way ahead. let's hope we never meet up, else we will be REAL bad influence on one another, LOL.

that's good to know that sales tax is dedectible. i will keep that in mind.

355Spider

You pay sales tax on leased cars as well. Is that deductible? The good thing about that is the tax credit you can move from car to car.

mrpc12

On a leased car you pay the sales tax on a monthly basis so it only comes out to a small amount each month. On a purchase/financed car you pay all the tax up front included in the purchase price. Then if you sell that car in a few months and pay off the loan you have essentially paid all the sales tax. Then you get to pay sales tax again on the next car. So if you keep using borrowed money to pay off the cars then you have this huge sales tax bill to write off at the end of the year. Now am I not saying this is the smartest thing to do becasue you lose your *** everytime you sell/trade in the cars but at least you can now write off the sales tax. Plus my tax guy says that I am a good candidate to get audited because nobody would believe I paid like $30K in sales taxes in one year.

mastiffdog

We are all a bunch of fish. At least I am having fun ...

Pete in DC

With all this downward pressure, what's fair for a black 01TT with 42k miles?

TT Surgeon

60

CAA

Pete - here are the auction results on '01's over the past couple months. This is wholesale - keep in mind.

06/15/06 MANHEIM Lease $54,300 40,199 Below SILVER 6G A Yes
06/13/06 FAAO Regular $67,800 15,822 Above RED 6G 6 Yes
06/06/06 NORTHSTR Regular $60,500 39,793 Avg GREY 6G 6 Yes
05/25/06 RIVRSIDE Lease $70,000 23,402 Above SLVR 6G 6 Yes
05/25/06 RIVRSIDE Regular $66,500 16,251 Avg BLACK 6G A Yes
05/25/06 RIVRSIDE Regular $65,500 17,063 Avg BLACK 6G A Yes
05/25/06 RIVRSIDE Lease $49,500 66,460 Below BLACK 6G 6 No
05/18/06 MANHEIM Regular $68,000 13,681 Above YELLOW 6G M Yes
05/18/06 MANHEIM Lease $58,750 30,734 Avg RED 6GT 6 Yes
05/18/06 MANHEIM Lease $55,000 40,170 Below SILVER 6GT O Yes
05/17/06 BAY CITI Regular $56,500 30,849 Below SILVER 6G M Yes

Dr_KarlB

I thought you could only deduct "sales or use tax" OR California Sate Income Tax but not both.

mrpc12

I'm not sure. I think you now get to deduct actual Sales Tax if you have receipts (only car purchases) or you can take a standard deduction for typical sales tax. But I don't know if that is in addition to state income tax or instead of. I'm not an accountant so don't take my word for it.

Pete in DC

Thanks, CAA (a blast from the past!)! What would a private party be...er...'entitled to'...over wholesale?

CAA

Pete - I'm a ghost on these boards anymore, but when I saw you chime in I had to reply. If you want a car PM me and I'll put you in touch with someone. Typically they are going to run 4-5k over but I know a guy that knows a guy... Hope all is well with you.

MPS

I leased my 2003 996tt for 3 years and just returned it recently. If I bought the car it would have cost me more (even a cash purchase) because of the depreciation.

And more importantl : I drove the car much more (snow salt, storms etc) than I would if I purchased it (done it in the past). So: daily driver 997tt=lease; second car=buy.

Brett - 1996 C4

Don't count on this. The sales tax deduction was not renewed for this year. So you're going to have to hope that your friendly local Member of Congress votes to make this retroactive for 2006...

lowmiler

This thread is so funny to read now. Especially the comment about how nobody drives their turbo more than 100,000 miles.