14 February 2009

Friday the 13th is traditionally a day known for fright and bad luck.
However, Friday, February 13th 2009 could be a departure from that point of view, especially if you are in the market for a new motorcycle.

Congress passed a massive spending bill (HR-1) the largest ever passed by any US Congress February 13, 2009. The bill is supposed to revive an ailing economy and put out of work Americans back into a job.

There is one tucked away provision that should appeal to motorcyclists, a tax break for purchase of a new bnot used- motorcycle.

Here is the breakdown:

• From now until the end of 2009 any one will be able to deduct all state and local taxes from the purchase of a new motorcycle so long as the purchaser makes less than $125,000 a year as a single tax filer or $250,000 for those filing jointly.
• The deduction applies to new motorcycles with a purchase price of up to $49,500 and a gross vehicle curb weight of less than 8,500 lbs.
• This is what is known as an "above the line deduction" which means all taxpayers are eligible whether the purchaser itemizes other deductions or not.

This deduction also applies to passenger cars, light trucks and recreational vehicles so long as they meet the same qualifiers.

So what are you waiting for? Go do your part to jump start the economy and buy a new bike.

The bill has passed the US Congress and now heads to the President for his signature before becoming law. The MRF is not taking an official position on HR 1.