May 22, 2012

Tax break for buying a new car, truck or rv is about to expire

If you missed out on the “Cash for Clunkers” program, that doesn’t mean you still can’t get some money back from the federal government for buying a new car. You can still drive away with a new vehicle and get a tax break if you buy that vehicle before the end of this year.

I.R.S. spokesman Christopher Miller says the break allows you to deduct state, local sales or excise taxes on new cars, light trucks, motorcycles and motor homes. That is for a vehicle costing up to $49,500. Miller says the tax break went into effect early in the year.

Miller says you have to have purchased the new car after February 16th of this or by December 31st. Miller says there are some income limits. He says the deduction for a married couple phases out with incomes of $250,000 or more and for a single person the deduction phases out at $125,000.

Miller says you don’t even have to itemize your deductions to get the tax break — but you do have to purchase the vehicle by December 31. For more information, go to: www.irs.gov.

Board votes to let legislators “expense” trips to inaugurals

Three Republicans and two Democrats on the Iowa Ethics and Campaign Disclosure Board have voted to let Democratic state legislators who attended Barack Obama’s inauguration use campaign funds to cover travel and lodging expenses for the trip.

Iowa Ethics and Campaign Disclosure Board chairman James Albert, a Republican from Des Moines, was an advocate of the change.

“I do recall an inauguration when I was in Washington, D.C. when I was working there with the FCC in which an organization called Iowans of the Washington Area hosted a reception for Iowa legislators and others from Iowa and it was packed,” Albert said during Wednesday’s board meeting.  “…You know, a lot of political business gets taken care of at events like that.”

The rules outlining how Iowa legislators are to manage their campaign funds have not specifically permitted spending for trips to D.C. and to Des Moines for inaugurating a new president or a governor.  Betsy Roe, a Republican from Pella, supported allowing legislators to use campaign funds to cover travel and hotel costs for inaugurations. 

 ”Having lived in Washington during several inaugurations and seeing close-up the kind of very important networking and personal relationship building, contacts, constituent service that gets done in inaugural periods I felt then and continue to feel that it would not be appropriate for us to prohibit the use of (campaign) funds to attend inaugurations,” Roe said during board discussion. 

Roe, a lawyer, served in the administration of the first President Bush, and then worked as a legal counsel for Bell Atlantic in its dealings with federal regulators in the Clinton administration. She now lives in Pella with her twin daughters and her husband, who is president of Central College.