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Taxation & Estate Planning

: Rubin on Tax

CASH FOR CLUNKERS [FLORIDA]

By Charles Rubin

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If you are fortunate (unfortunate?) enough to qualify for the cash for clunkers program, the federal government will provide a $3,500 or $4,500 voucher toward the purchase or lease of a new, more fuel efficient vehicle when the purchaser or lessee surrenders an eligible trade-in to a participating dealer.

In a break to participants, the Florida Department of Revenue has advised car dealers that they should consider the voucher itself as a trade-in for purposes of Florida sales tax purposes. This means that the amount of the voucher will be taken off the sales price in computing sales tax due on the new vehicle purchase.

Tax Information Publication No. 09A01-11, July 16, 2009

Full post as published by Rubin on Tax on July 30, 2009 (boomark / email).

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