2009 Stimulus Check

Just before President Obama signed the 2009 stimulus bill, help for the RV and motorcycle industries was included at the very last minute. Thanks to the effort of motorcycle and RV related groups such as Harley-Davidson and AMA, these vehicles sneaked their way into the 2009 stimulus package. Many think that this legislation will save the industry and this new legislation will be a big incentive for all those thinking about buying new RV’s or motorcycles. The cost allotted for these vehicles is almost $100 million.

Under Section 1008 of the stimulus bill, a taxpayers who will buy an RV or a motorcycle that costs less than $49,500 can save on both the federal and state sales tax that they pay in 2009 – simply by filing their tax returns this year. Remember that this is only a tax deduction and does not come in the form of a 2009 stimulus check.

If you want to qualify for this tax deduction, your adjusted gross income every year must not be over $125,000. But for those who have joint returns, it must not exceed $250,000. According to the bill, the period that this deduction applies is from the enactment of the stimulus act until a year after President Obama signed it. You might want to check with your dealer if this is applicable if you purchase RVs and motorcycles near the end or beginning date.

For example, if you purchase $20,000 worth of bike and then you are obliged to pay sales tax at 6%, then the sales tax would become $1,200. It will be then deduced from your 2010 taxes. Therefore, if you are taxed at 30%, then you would save as much as $400. Although it is not a lot, it could still help you save money so that you can buy accessories for your motorcycle or RV instead of taking out more money from your wallet and ruining your budget.