Do you have to pay a tax when you buy a car in SA? (San Antonio: sales, buying)

[just.looking27]

Is there a percent tax to be paid when buying a car in San Antonio? If so, is is a lot?

Thanks

[TexasRedneck]

Just the standard State Sales tax - which is collected on EVERY motor vehicle sales transaction anywhere in the state - 6.25% IIRC....no local sales tax.

[SabresFanInSA]

Originally Posted by TexasRedneck

Just the standard State Sales tax - which is collected on EVERY motor vehicle sales transaction anywhere in the state - 6.25% IIRC....no local sales tax.

Having just bought a car Friday, I can say you are correct.

[TexasRedneck]

Yeah....I buy a new one (on average) every 18 months or so....just replaced the wifes' CTS w/a STS - so my truck is next, I guess!<G>

[KordovaJD]

Bought a new truck Saturday, 6.25% is correct. There is no jurisdictional additive tax on vehicles here, like the .5% or .25 % some cities add.

[cjw]

I don't know the IRS rules but you may be able to deduct the vehicle sales tax you pay on your income tax return.

[KordovaJD]

Originally Posted by cjw

I don't know the IRS rules but you may be able to deduct the vehicle sales tax you pay on your income tax return.

You can almost always deduct the sales tax from your income. If you purchased a vehicle over 6000 GWVR and you own a business or otherwise file a schedule C, you may be able to write of the entire amount of the vehicle purchase from your income. I suggest talking to a tax professional in January/February next year and don't forget to tell him about the car purchase.

[TexasRedneck]

That'd be a Section 179 expense, IIRC....worse thing you can do, as most accountants will tell you. You're better served 90% of the time to deduct straight mileage - that way you don't have to recover any depreciated assets come trade-in time. I've done mileage deduction for 30+ years now, and every time I run depreciation calcs vs. mileage, mileage is more beneficial.

[Steel Man]

If you trade in a car, then the value of that car is subtracted from the amount taxed on the original car.

For example: Car you're buying is $20,000. Car you're trading in is valued at $5,000 (as valued by the dealer). You then pay the 6.25% tax on $15,000.

[KordovaJD]

Originally Posted by TexasRedneck

That'd be a Section 179 expense, IIRC....worse thing you can do, as most accountants will tell you. You're better served 90% of the time to deduct straight mileage - that way you don't have to recover any depreciated assets come trade-in time. I've done mileage deduction for 30+ years now, and every time I run depreciation calcs vs. mileage, mileage is more beneficial.

True for the average bear, but I generally will drive a vehicle until it's wheels fall off basically, then depending on cost, I will donate it, hence, no recovery on depreciated asset.