IRS: Recovery: Vehicle Tax Deduction - June 09
October 13, 2009
Tax Breaks on New Vehicle Purchases
Buy new by December 31, deduct your sales tax
Most new car and motorcycle buyers who purchase by the end of 2009 have a built in savings coming their way, namely a deduction of state and local taxes on their 2009 federal income tax return.
The deduction can top $3,200, but the average new car buyer will be able to claim a deduction of about $1,500. It applies to the first $49,500 of a vehicle’s purchase price. And, if you already bought a new vehicle after February 16 of this year, you may also qualify.
Combine this with excellent selection at your
Luther Automotive dealership, great incentives and interest rates, and more than fair prices for vehicle trade-ins, and the choice to buy in 2009 becomes clear!
The new vehicle tax deduction is part of the recent federal stimulus plan and is available to itemizers and non-itemizers alike. You can estimate your deduction using
IRS Publication 919, lines 10a to 10k. Individuals with a gross income below $125,000 (married filing jointly below $250,000) qualify for the full deduction, according to the IRS.
Qualifying new motor vehicles include passenger automobiles, light trucks, and motorcycles. There is no limit on the number of vehicles for which you can claim the deduction. Some limitations apply. The IRS offers a
Questions and Answers page with more information and this video also explains the program. Or, ask your favorite Luther Auto dealership.
