New bike gets new tax break for ’09

In a momentary lapse of stupidity, the government has done something that not only makes sense, it could save dollars.

When the economy, and the motor vehicle sales that motivated it, collapsed on itself like the the Black Hole of Finance, Congress scurried like the insects that they are into all manner of cupboards and crannies, pulling from the contents a strange collection of tax breaks and credits and enhancements.

Among them was a neat little trick that gives a tax credit to anyone who purchased a new motorcyle in 2009.

Enigmatically called the American Recovery and Reinvestment Act — what's that got to do with riding? — it was  part of the $787 billion economic stimulus package approved last February. It allows riders to deduct state and local sales and use taxes that were paid on the purchase of a new ride between Feb. 17, 2009  and Dec. 31, 2009. That includes  street and dual-sport motorcycles as well as less worthy vehicles like scooters, mopeds, cars, light trucks and motor homes.

Go figure.

According to the American Motorcyclist Association, the law allows for deduction of the sales tax on the bike, which can be anywhere from five to seven percent in most states. As best as I can tell, in Virginia we have the usual five percent sales tax with a three percent vehicle sales and use tax added for a total of eight percent.

Say you bought a $10,000 Buell Blast.

A $10 grand Blast? What were you thinking? Are you nuts? Those things are only about $4800 out-the- door. Boy Howdy, you're dumb.

Anyway, so you go to do your taxes and you find out that 8 percent of $10K is ... uh ... wait a minute ... don't tell me ... let me get my shoes off ... $800. That means you can deduct $800 from your taxable income.

Check out www.irs.gov/newsroom/article/0,,id=211310,00.html., if you don't believe me.

Anyway, if you've done your taxes and didn't take your money, it's not too late to refile. If you're a procrastinator, you're good. Take advantage of it while it's there.

Remember, Congress is still in session and nothing you own is safe.