Luxury Tax Date: Thu, 24 Mar 2005 From: Dorothy Dear Sir: I want to buy a BMW Z4 for about $40,000. What is the luxury tax?
Answer Date: Fri, 01 Apr 2005 Hello Dorothy, The federal luxury tax for automobiles has expired for sales after 2002, so there is no luxury tax unless a local one applies. Ask your BMW dealer. Good luck! Mike Gray For answers to new questions, subscribe to our newsletter, Michael Gray, CPA’s Tax & Business Insight by filling out the form below. IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this website was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.
