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Tax question: If you buy a Chevy Volt, do you pay the state sales tax on the rebate?
one man's opinion...

Posted on 08/24/2010 11:14:42 AM PDT by ken5050

Freepers know everything, so I expect that someone will have the answer to the question..it came up in a discussion last night. If you buy a Chevy Volt, you'll get a rebate when you file your 1040 form. So, do you pay state sales tax on the rebate amount?


TOPICS: Business/Economy
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IOW, if the car costs $40,000, and your state has a 7% sales tax..your sales tax is $2,800. Now you'll get the rebate, up to $7000, I believe on the federal tax return..but do you pay the state sales tax on the rebate amount?

Two more questions, while I'm at it?

1. Anyone know if the Volt qualifies for the California rebate..I heard it didn't.

2. Is the federal rebate a no-refund rebate..IOW, if your total federal tax bill is say, $2000, that's ALL you get back...not the full $7000..true or not?

1 posted on 08/24/2010 11:14:46 AM PDT by ken5050
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To: All

Relax..I have NO intention of buying one...


2 posted on 08/24/2010 11:15:15 AM PDT by ken5050 (Save the Earth..It's the only planet with chocolate!!!)
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To: ken5050

Another Q: if you buy a Chevy Volt, can you depreciate the battery back, since it will be valued as surplus in only 5 years? Would that be MACRS or straight-line?


3 posted on 08/24/2010 11:16:15 AM PDT by backwoods-engineer (There is no "common good" which minimizes or sacrifices the individual. --Walter Scott Hudson)
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To: ken5050

No, but they will charge someone income tax on the rebate in addition to a 100% tax for being dumb as a rock.


4 posted on 08/24/2010 11:16:25 AM PDT by Gaffer ("Profiling: The only profile I need is a chalk outline around their dead ass!")
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To: ken5050

Another Q: if you buy a Chevy Volt, can you depreciate the battery pack, since it will be valued as surplus in only 5 years? Would that be MACRS or straight-line?


5 posted on 08/24/2010 11:16:37 AM PDT by backwoods-engineer (There is no "common good" which minimizes or sacrifices the individual. --Walter Scott Hudson)
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To: ken5050

A $41,000 electric car that goes only 40 miles before it need to be recharged (overnight)?

yeah... that’s a government designed car


6 posted on 08/24/2010 11:17:18 AM PDT by Mr. K (Physically unable to proofreed (<---oops! see?))
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To: ken5050

If you buy one of those I hope they tax the hell out of you!


7 posted on 08/24/2010 11:19:11 AM PDT by dalereed
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To: Gaffer

I don’t know if you pay the rebate tax but your shriveled member tax decreases by 45% due to loss of usage.


8 posted on 08/24/2010 11:20:03 AM PDT by vwbug
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To: ken5050

another question, how is the state going to collect highway trust funds on electric drive cars since it currently is paid at the pump? I’m sure they will find a way..


9 posted on 08/24/2010 11:20:49 AM PDT by dblshot (Insanity - electing the same people over and over and expecting different results.)
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To: Mr. K

After 40 miles, the on-board internal-combustion engine provides power for the electric motors and charges the batteries.

Still stupid, but that’s the plan.


10 posted on 08/24/2010 11:20:57 AM PDT by SJSAMPLE
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To: ken5050

I believe that for any rebates of any sort, the sales taz is on the sales price (not including the rebate).

So they get the full tax from you.


11 posted on 08/24/2010 11:23:06 AM PDT by Pessimist
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To: ken5050
You paid the sales tax when you bought the car. So, when you get the federal tax credit, you don't get a refund of the state sales tax -- unless your state provides for one. On the other hand, you might be able to deduct your sales taxes if you itemize deductions (and Congress extends it again).

And it's a federal tax credit, not a "rebate". That means that it is added to your tax payment, not subtracted from your tax liability.

So, if you owe $2000 and didn't pay any estimated tax or withhold anything, you'll get a $5000 refund.

12 posted on 08/24/2010 11:23:30 AM PDT by justlurking (The only remedy for a bad guy with a gun is a good WOMAN (Sgt. Kimberly Munley) with a gun)
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To: ken5050

Who’s going to be dumb enough to buy one of these things to begin with?

If they do buy one, then I pray that they get hit with every tax imaginable. They deserve it.


13 posted on 08/24/2010 11:26:28 AM PDT by Howie66 (I can see November from my house.)
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To: dblshot

Yes, they will.

Have you heard talk of “smart meters”? The want to put in electric meters that know the time of day of useage and compute your bill accordingly.

It’s not much of a hop from there to having a special plug for your car which incurs road use tax too.

Also, there’s been talk of collecting road use tax based on your odometer reading.


14 posted on 08/24/2010 11:27:15 AM PDT by Pessimist
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To: dblshot

They are going to start charging you per mile that you drive.


15 posted on 08/24/2010 11:27:25 AM PDT by willyd (Tree planting is a zero sum game unless you find the seed on the sidewalk ;-))
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To: Pessimist

Glad someone actually answered the question. I think you have it right. You pay tax on the full amount.


16 posted on 08/24/2010 11:27:52 AM PDT by bigbob
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To: Howie66
Nobody is going to buy one of these Government Manufactured vanities other than a handful of Hollywood celebrity idiots.

What's so funny about this nonsense is that the battery in these things is an environmental nightmare itself.

17 posted on 08/24/2010 11:31:13 AM PDT by jpl (It's "My Big Fat Deadly Greek Riot", coming soon to a bankrupt socialist state near you.)
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To: dalereed

I’m assuming that ken505 is not looking to buy a Volt - he’s looking for facts to throw at some liberal friends who think it’s a great idea.


18 posted on 08/24/2010 11:38:24 AM PDT by FroggyTheGremlim (He promised hope; he gave us hype. He promised change; he gave us chains!)
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To: ken5050

The only tax you have to pay is Dave Ramsey’s ‘Stupid Tax.’


19 posted on 08/24/2010 11:40:08 AM PDT by E. Pluribus Unum ("The only stable state is one in which all men are equal before the law." -- Aristotle)
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To: ken5050

It really doesn’t matter. If you buy a Chevy Volt, then it is obvious to all that you do not value money.


20 posted on 08/24/2010 11:43:07 AM PDT by Hoodat (.For the weapons of our warfare are mighty in God for pulling down strongholds.)
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