Instructions For Schedule A (Form 1040) - 2009 (Page 7 of 15) in pdf

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Self-contained toilet.

You may want to take a credit

Line 7

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for the foreign tax instead of a

TIP

Heating and/or air conditioning.

deduction. See the instructions

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New Motor Vehicle Taxes

Potable water supply system includ-

for Form 1040, line 47, for de-

ing a faucet and sink.

tails.

If you elected to deduct state

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Separate 110-125 volt electrical

and local general sales taxes on

power supply and/or propane.

line 5b, you cannot deduct new

motor vehicle taxes on line 7.

Interest You Paid

Enter on line 2 the cost of the new

Line 2.

You may be able to deduct state and

motor vehicle(s). Do not include on line 2

Whether your interest expense is treated as

local sales and excise taxes (or certain other

any state or local sales or excise taxes you

investment interest, personal interest, or

taxes or fees in a state without a sales tax)

entered on line 1.

business interest depends on how and when

paid after February 16, 2009, for the

Line 3.

If you check the “Yes” box, the

you used the loan proceeds. See Pub. 535

purchase of any new motor vehicle(s). To

amount you can include for state or local

for details.

figure the amount you can deduct, you will

sales and excise taxes is limited to the taxes

need to complete the Worksheet for Line 7

In general, if you paid interest in 2009

imposed on the first $49,500 of the

on the back of Schedule A.

that applies to any period after 2009, you

purchase price of each new motor vehicle.

If the amount on Form 1040, line 38, is

can deduct only amounts that apply for

To figure the amount to enter on line 3, you

equal to or greater than $135,000

2009.

will need to know the rate(s) of tax that

($260,000 if married filing jointly), you

apply in the state and locality where you

cannot deduct these taxes.

purchased each new motor vehicle. If the

Instructions for Worksheet for

state and locality where you purchased a

Lines 10 and 11

Line 7

new motor vehicle imposes a fixed rate,

multiply the combined state and local rate

Home Mortgage Interest

Enter the state or local sales and

Line 1.

by the smaller of $49,500 or the purchase

excise taxes from your sales invoice(s) re-

A home mortgage is any loan that is se-

price (before taxes) of the new motor vehi-

lating to any new motor vehicle(s) (defined

cured by your main home or second home.

cle. See Example 1 below.

below) you purchased after February 16,

It includes first and second mortgages,

2009.

Some taxing jurisdictions may provide

home equity loans, and refinanced mort-

for a sales tax that is limited to a certain

States with no sales tax. The states of

gages.

dollar amount per purchase. One example

Alaska, Delaware, Hawaii, Montana, New

A home can be a house, condominium,

is Manatee County, Florida. Manatee

Hampshire, and Oregon do not have a sales

cooperative, mobile home, boat, or similar

County charges an additional

⁄

% (.005)

tax. However, you may be charged other

property. It must provide basic living ac-

discretionary sales tax that is collected on

taxes or fees on the purchase of a new mo-

commodations including sleeping space,

the first $5,000 of a purchase, not to exceed

tor vehicle in one of these six states that is

toilet, and cooking facilities.

$25. See Example 2 below.

similar to a sales tax. The taxes or fees that

qualify must be assessed on the purchase of

Example 1. You purchased a new mo-

If you

Limit on home mortgage interest.

the vehicle and must be based on the

tor vehicle on April 3, 2009, for $56,500

took out any mortgages after October 13,

vehicle’s sales price or as a per unit fee.

before taxes. The state where you pur-

1987, your deduction may be limited. Any

You can include these taxes and fees on

chased the vehicle imposes a fixed sales tax

additional amounts borrowed after October

line 1 of the Worksheet for Line 7 .

rate of 5% and the locality also charges a

13, 1987, on a line-of-credit mortgage you

One example of a fee you can include on

fixed rate of 1%, for a combined fixed sales

had on that date are treated as a mortgage

line 1 of the worksheet is the 3.75% docu-

tax rate of 6%. The amount of sales tax you

taken out after October 13, 1987. If you

can include on line 3 is $2,970 ($49,500 ×

ment fee when registering a title with the

refinanced a mortgage you had on October

Delaware Division of Motor Vehicles. The

6% (.06)).

13, 1987, treat the new mortgage as taken

fee is 3.75% of the purchase price.

out on or before October 13, 1987. But if

Example 2. You purchased a new mo-

New motor vehicle. A new motor vehi-

you refinanced for more than the balance of

tor vehicle in Manatee County, Florida, on

cle is any of the following. The original use

the old mortgage, treat the excess as a mort-

April 16, 2009, for $60,000 before taxes.

of the vehicle must begin with you.

gage taken out after October 13, 1987.

The state of Florida has a fixed sales tax

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A passenger automobile or light truck

rate of 6%. The amount of sales tax you can

See Pub. 936 to figure your deduction if

include on line 3 is $2,995 ($49,500 × 6%

that is self propelled, designed to transport

either (1) or (2) below applies. If you had

people or property on a street or highway,

(.06) + $25). In this example, $2,970 repre-

more than one home at the same time, the

and the gross vehicle weight rating of the

sents the 6% Florida sales tax and the $25 is

dollar amounts in (1) and (2) apply to the

vehicle is not more than 8,500 pounds.

for the Manatee County discretionary sales

total mortgages on both homes.

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tax on the first $5,000 of the purchase price.

A motorcycle (defined below) with a

1. You took out any mortgages after Oc-

gross vehicle weight rating of not more

tober 13, 1987, and used the proceeds for

than 8,500 pounds.

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purposes other than to buy, build, or im-

Line 8

A motor home (defined below).

prove your home, and all of these mort-

Motorcycle. A vehicle with motive

gages totaled over $100,000 at any time

Other Taxes

power having a seat or saddle for the use of

during 2009. The limit is $50,000 if mar-

the rider and designed to travel on not more

If you had any deductible tax not listed on

ried filing separately. An example of this

than three wheels in contact with the

line 5, 6, or 7, list the type and amount of

type of mortgage is a home equity loan

ground.

tax. Enter only one total on line 8. Include

used to pay off credit card bills, buy a car,

Motor home. A multi-purpose vehicle

on this line:

or pay tuition.

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with motive power that is designed to pro-

State and local personal property

2. You took out any mortgages after Oc-

vide temporary residential accommoda-

taxes you paid, if the taxes were based on

tober 13, 1987, and used the proceeds to

tions, as evidenced by the presence of at

value alone and were imposed on a yearly

buy, build, or improve your home, and

least four of the following facilities.

basis; and

these mortgages plus any mortgages you

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Cooking.

took out on or before October 13, 1987,

Income tax you paid to a foreign

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totaled over $1 million at any time during

Refrigeration or ice box.

country or U.S. possession.

A-6

Instructions For Schedule A (Form 1040) - 2009 Page 7

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