IRS announced on March 30, 2009 that taxpayers who buy a new passenger vehicle this year may
\nbe entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax
\nreturns next year.<\/p>\n
“For those thinking about buying a new car this year, this deduction may give them a little more drive
\nto make their purchase this year,” said IRS Commissioner Doug Shulman. “This deduction enables
\ntaxpayers to buy now and get cash back later on their tax returns.”<\/p>\n
The deduction is limited to the state and local sales and excise taxes paid on up to $49,500 of the
\npurchase price of a qualified new car, light truck, motor home or motorcycle. The amount of the deduction
\nis phased out for taxpayers whose modified adjusted gross income is between $125,000 and
\n$135,000 for individual filers and between $250,000 and $260,000 for joint filers.<\/p>\n
IRS also alerted taxpayers that the vehicle must be purchased after February 16, 2009, and before
\nJanuary 1, 2010, to qualify for the deduction. The special deduction is available regardless of
\nwhether a taxpayer itemizes deductions on their return. IRS reminded taxpayers the deduction may
\nnot be taken on 2008 tax returns.<\/p>\n","protected":false},"excerpt":{"rendered":"
IRS announced on March 30, 2009 that taxpayers who buy a new passenger vehicle this year may be entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax returns next year. “For … Continue reading