Bought a bike last year? Is it elegible for a tax deduction?

American Recovery & Reinvestment Act provides relief for motorcycle buyers:

For mc's (and some other new vehicles) purchased between late February and Dec 31, 2009. Realized savings come as a reduction to taxes paid in during the calendar year. Most, if not all motorcycles, are covered, including mopeds, scooters, and regular vehicles, subject to a weight limitation.

How much can I shave from my tax bill?

For simplification purposes, let's say your local sales tax rate is 10%, and you bought a new bike during the eligible period for $20,000, that's 2 grand in sales tax, which would bring down the amount on which you pay taxes on your 1040 form by $2,000. If you're in the 25% bracket, that's about $500 less than you would have wrote your IRS check for. Certain excise taxes may also be deductible, and no, you do NOT have to itemize to achieve this deduction, but certain income limits apply for you rich suckers.

Disclaimer:

ABM is not an accounting firm. For the official bulletin, prepare for glassy eyes, and go to www.IRS.gov, or a local firm providing tax advice. A less expensive, less time consuming way is to buy a tax prep CD, and use your computer. It's very easy. We like HR Block's Tax Cut.