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Contact Information:
Edward S. Kisscorni, CPA
290 Suncrest Court, SW
Grandville, MI 49418

Office: 616/233-0667
Cell: 616/443-6730
Fax: 616/233-0667

Blog: www.EdKisscorni.com/Blog1
Email: Ed@EdKisscorni.com
 



 



 

 Blog 
Thursday, November 14 2013

Exemption Amount to be Phased-In Over Twenty-Six Years

Public Act 159 of 2013 and Public Act 160 of 2013, both essentially the same and both effective November 6, 2013 enact a trade-in allowance deduction on the purchase of a motor vehicle or recreational vehicle.   The agreed-upon value of a motor vehicle or recreational vehicle used as part payment of the purchase price of a new or used motor vehicle or a new or used recreational vehicle is excluded from the tax base for purposes of Michigan Sales Tax.

The agreed-upon value of the trade-in vehicle must be separately stated on the invoice or other similar document given to the purchaser.

The deduction is phased in as follows:

Beginning December 15, 2013, the maximum trade-in value is limited to $2,000.

Beginning January 1, 2015, and each January thereafter, the allowable trade-in value increases by $500 unless Section 105D of the Social Welfare Act is repealed.

Beginning January 1 of the year in which the trade-in value exceeds $14,000, there will no longer be a limit on the agreed-upon value of the trade-in vehicle.

In addition, beginning November 15, 2013, credit for the agreed-upon value of a titled watercraft used as part payment of the purchase price of a new or used watercraft is excluded from the tax base so long as the agreed-upon value is separately stated on the invoice or bill of sale.

Posted by: Ed Kisscorni AT 01:00 pm   |  Permalink   |  Email

 

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