The IRS is handing back $1,000 plus on a new car purchase this year. This is a new provision of the Senate’s Version of the economic stimulus bill. The measure, approved by the Senate, would make auto loan interest and state sales tax deductible from federal income tax.
The 2009 stimulus package signed into law by President Obama includes a valuable tax break for people who buy new cars, pickups, motorcycles and motor homes.
“You could save as much as 10% off the price of a new car by writing off state and local sales taxes. “Imagine if you buy a $30,000 car, your sales tax is nearly $3,000. You take a $3,000 deduction right off your federal income tax for 2009.” Says one dealership owner in California.
However, there are a few guidelines that must be followed:
•The deduction is limited to the state and local sales and excise taxes paid on up to $49,500 of the purchase price of the new vehicle.
•The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.
•The vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010, to qualify for the deduction.
•The deduction cannot be claimed on 2008 tax returns.
So you may want to consider a new car purchase more seriously before this tax incentive expires on January 1, 2010. Come down to L.A. Car Connection and let us help you choose your next vehicle.
The 2009 stimulus package signed into law by President Obama includes a valuable tax break for people who buy new cars, pickups, motorcycles and motor homes.
“You could save as much as 10% off the price of a new car by writing off state and local sales taxes. “Imagine if you buy a $30,000 car, your sales tax is nearly $3,000. You take a $3,000 deduction right off your federal income tax for 2009.” Says one dealership owner in California.
However, there are a few guidelines that must be followed:
•The deduction is limited to the state and local sales and excise taxes paid on up to $49,500 of the purchase price of the new vehicle.
•The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.
•The vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010, to qualify for the deduction.
•The deduction cannot be claimed on 2008 tax returns.
So you may want to consider a new car purchase more seriously before this tax incentive expires on January 1, 2010. Come down to L.A. Car Connection and let us help you choose your next vehicle.
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