Posted 2005-05-14 2:18 AM (#25093) Subject: Great Towing News from none other than the IRS
Elite Veteran
Posts: 1160 Location: Denver Colorado
Excise tax on trucks has been confusing. Dealers whom don't collect the 12% tax on new trucks for commercial use, such a towing a trailer over 10,000#'s or trucks designed for the purpose of towing trailers, have been liable for the tax themselves. All this is such a gray area as is driving license requirements between states when towing trailers. As reported today in the current issue of Trailer Life Magazine (June), the IRS has issued guidance on March 15th to go into effect on sales April 4, 2005 and after that sounds like Class 6 trucks and below are excluded from Federal Excise Tax. This would mean trucks with a GVWR of 26,000 pounds or less. For example a Ford F650, GM 6500, SportChassis Freightliner etc. and smaller. So the scare that 1 tons would be subject to excise tax or trucks with factory trailer brake options would be subject, has been cleared up. The link to the IRS Guidance is http://www.irs.gov/newsroom/article/0,,id=136811,00.html This is great news for folks that tow trailers.
Posted 2005-05-14 7:23 AM (#25097 - in reply to #25093) Subject: RE: Great Towing News from none other than the IRS
Expert
Posts: 2689
Cynical me sez;
"They" want us to buy bigger trucks and burn more fuel.
Incentives through the tax code, etc.
Who "they" ?
The anonymous ones... (with influence).
Hmmmm, Freight_Shaker Sport... is there one ine YOUR future ?
Posted 2005-05-16 10:18 AM (#25165 - in reply to #25093) Subject: RE: Great Towing News from none other than the IRS
Elite Veteran
Posts: 634 Location: Tipton, IN
What the H eeeeee double L are you talking about REG? What it means is that the IRS has figured out more AVERAGE AMERICANS, pulling for recreational use, buy the trucks than businesses. Therefore they will leave it up to the purchaser to determine if he/she/company is liable for federal commercial excise instead of the dealer who just sells trucks. There are more 1 ton and 6500/Freight sports pulling 5th wheels and horse trailers than Bobcats and equipment for excavating companies. I thinks you read to many conspiracy theory books my good man.
Posted 2005-05-17 7:56 AM (#25206 - in reply to #25165) Subject: RE: Great Towing News from none other than the IRS
Expert
Posts: 2689
More a joke ABOUT conspiracy theorists... though I didn't punctuate it with emoticons.
Not that the first year 100% depreciation allowance on vehicles over 6,000 GVW wasn't noticed by the folk pulling bobcat trailers, plowing snow, mowing lawns, hauling construction material and... pulling horse trailers 'officially' as breeders, trainers, etc. (-:
THAT tax break DID stimulate the US based auto industry - in it's time of need.
Posted 2005-05-17 8:21 AM (#25209 - in reply to #25093) Subject: RE: Great Towing News from none other than the IRS
Elite Veteran
Posts: 634 Location: Tipton, IN
I think the American auto industry neds a stiff kick in the hind quarters to wake them up. Did you know that almost $14000 of every GM car that rolls off the line is spent on benefits? I got nothing against good paying jobs for Americans, but the day that unskilled labor installing 5 screws in a trim piece, or a lady that spends 5 hours a day knitting (My wifes grandmother for 22 years at Delco with her 8th grade education) in between loading 15 pound trays of electronic boards into a wave solder bath makes $22 and hour and feels they should be GUARANTEED a job for life we need to re-evaluate the model.
Great Towing News from none other than the IRS
