houtrz
Lake Jackson Texas
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Someone posted a thread a few weeks ago about golf carts having a big rebate or tax rebate or something. I called my local dealer about this and he told me if you bought a new electric vehichle that was originally made by the manufacture to be street legal, then you would get a $5,700 tax credit.
He said Club Car didn't make a street legal cart yet but they were about to come out with one and I didn't ask him about other brands.
He did mention two that were street legal, two names I never heard of before and I can't remember now.
Anyways how does the tax credit work? He told me I'd pay full price for the cart then write off $5,700 on my taxes. That just means I don't have to pay Federal Income Tax on $5,700 of my money so if I was in a 25% tax bracket, I"d save $1,425. Am I thinking correctly?
Also the thread I read about a month or so ago made it sound like golf cart sales were thru the roof because of this but according to my dealer, the cart has to be made street legal from the ORIGINAL manufacture. Anyone know more about this topic?
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downtheroad
Puget Sound
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Golfers in the US are getting a steal thanks to the stimulus plan. Golf carts are getting massive discounts, up to half or two-thirds off, and some cheaper models can be completely free.
The intention of the stimulus package was to encourage consumers to buy high-mileage cars. Those who purchase electric vehicles can get $4,200 to $5,500 in federal tax credit. Golf cart, while not a practical mean of transportation, falls under this category, thus eligible for the tax credit from government. In some states, there are similar incentive programs, which provide additional subsidies. When an average golf cart costs about $8,000 to $10,000, it means golfers can get their carts for free, paid from tax money.
The stimulus crack emerged after IRS ruled that golf carts qualify for electric car tax credit as long as they are road worthy. They need to have safety features, like side and rear mirrors and 3-point seat belts.
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houtrz
Lake Jackson Texas
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Correct me if I'm wrong but you don't buy an $8,000 cart then get $5,500 off as a tax credit which would make the cart cost $2,500. It sounds like you pay the full $8,000 for a new cart, then when you do your taxes next April, you get to deduct $5,500 off your adjusted gross taxes so you just not paying tax on $5,500 which would really save you about $1,400
The golf cart store owner I talked to today said the carts had to be made street legal by the original manufacture, not by adding a bunch of aftermarket lights, seat belts and so on, so its original intended purpose was to be street legal.
Am I misunderstanding something? People made it sound like its to good to be true but I don't see how.
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Charlie D.
Gonzales, La.
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This is the Wall Street Jornal article:
OCTOBER 17, 2009
Cash for Clubbers
Congress's fabulous golf cart stimulus.
We thought cash for clunkers was the ultimate waste of taxpayer money, but as usual we were too optimistic. Thanks to the federal tax credit to buy high-mileage cars that was part of President Obama's stimulus plan, Uncle Sam is now paying Americans to buy that great necessity of modern life, the golf cart.
The federal credit provides from $4,200 to $5,500 for the purchase of an electric vehicle, and when it is combined with similar incentive plans in many states the tax credits can pay for nearly the entire cost of a golf cart. Even in states that don't have their own tax rebate plans, the federal credit is generous enough to pay for half or even two-thirds of the average sticker price of a cart, which is typically in the range of $8,000 to $10,000. "The purchase of some models could be absolutely free," Roger Gaddis of Ada Electric Cars in Oklahoma said earlier this year. "Is that about the coolest thing you've ever heard?"
The golf-cart boom has followed an IRS ruling that golf carts qualify for the electric-car credit as long as they are also road worthy. These qualifying golf carts are essentially the same as normal golf carts save for adding some safety features, such as side and rearview mirrors and three-point seat belts. They typically can go 15 to 25 miles per hour.
In South Carolina, sales of these carts have been soaring as dealerships alert customers to Uncle Sam's giveaway. "The Golf Cart Man" in the Villages of Lady Lake, Florida is running a banner online ad that declares: "GET A FREE GOLF CART. Or make $2,000 doing absolutely nothing!"
Golf Cart Man is referring to his offer in which you can buy the cart for $8,000, get a $5,300 tax credit off your 2009 income tax, lease it back for $100 a month for 27 months, at which point Golf Cart Man will buy back the cart for $2,000. "This means you own a free Golf Cart or made $2,000 cash doing absolutely nothing!!!" You can't blame a guy for exploiting loopholes that Congress offers.
The IRS has also ruled that there's no limit to how many electric cars an individual can buy, so some enterprising profiteers are stocking up on multiple carts while the federal credit lasts, in order to resell them at a profit later. We should note that some states, such as Oklahoma, have caught on to the giveaway and are debating whether to cancel or limit their state credits. But in Congress they're still on the driving range.
It is a tax credit. A tax credit reduces your taxes directly. As I understand it, if you have $10,000 in taxes and qualify for a $5,300. tax credit, you would then only pay $4,700 in taxes.
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ky-auctioneer
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Here is one that might qualify. I'll take two!
Golf Cart
Free and easy down the road I go . . .
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taborekle
Clements, Md
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houtrz wrote:Correct me if I'm wrong but you don't buy an $8,000 cart then get $5,500 off as a tax credit which would make the cart cost $2,500. It sounds like you pay the full $8,000 for a new cart, then when you do your taxes next April, you get to deduct $5,500 off your adjusted gross taxes so you just not paying tax on $5,500 which would really save you about $1,400
The golf cart store owner I talked to today said the carts had to be made street legal by the original manufacture, not by adding a bunch of aftermarket lights, seat belts and so on, so its original intended purpose was to be street legal.
Am I misunderstanding something? People made it sound like its to good to be true but I don't see how.
Yes, you are wrong. A tax credit is NOT a tax deduction. It is a dollar for dollar exchange on you're taxes. If you owe uncle sam 5500 before the tax credit, then you would owe him -zero- after application.
It's a really good deal.
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accsys
Green Cove Springs, FL
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taborekle wrote:houtrz wrote:Correct me if I'm wrong but you don't buy an $8,000 cart then get $5,500 off as a tax credit which would make the cart cost $2,500. It sounds like you pay the full $8,000 for a new cart, then when you do your taxes next April, you get to deduct $5,500 off your adjusted gross taxes so you just not paying tax on $5,500 which would really save you about $1,400
The golf cart store owner I talked to today said the carts had to be made street legal by the original manufacture, not by adding a bunch of aftermarket lights, seat belts and so on, so its original intended purpose was to be street legal.
Am I misunderstanding something? People made it sound like its to good to be true but I don't see how.
Yes, you are wrong. A tax credit is NOT a tax deduction. It is a dollar for dollar exchange on you're taxes. If you owe uncle sam 5500 before the tax credit, then you would owe him -zero- after application.
It's a really good deal.
I believe this particular credit is refundable as well which means if you owe 2,500 in tax you would get a refund of 3,000 after the 5,500 credit, not just reduce your taxes to 0. They are tightening this one up after the first of the year and the credit will be reduced substantially.
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