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Posted by Todd Wilson [70.130.55.6] on Sunday, November 01, 2009 at 13:23:24 :
In Reply to: True in Nebraska posted by SUPRDUD [66.146.251.103] on Saturday, October 31, 2009 at 21:44:14 :
I am not seeing anything anywhere that says Nebraska is using it as income. What they are doing is not counting it in the price of the vehicle and you are sales taxed on the vehicle price before the clunker $$ was subtracted.
With that being said the federal guidelines of the clunker deal say it will not be taxed as income. States however can make their own tax laws and if a state wants to they can consider this income. Most states usually follow the federal guidelines of something so its unlikely you will be taxed on the clunker cash as "income". You didnt get any money handed to you. You simply got a rebate from the guvment. What could happen though is you would have to pay a capitol gains tax on your vehicle that you clunkered if it clearly was worth 1000$ and you got 4500$ for it. Same thing as if you sell a vehicle for more then you originally paid for it. You are supposed to pay a capitol gains tax. Very few do this but in the clunker deal theres a paper trail somewhere. Will the states sort thru everything to figure it all out for a few hundred dollars of extra tax? Who knows. What is clear is none of these situations were even thought about or asked until after the fact. Another great government program!
Todd
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