Sales Tax Deduction for Car Purchases
Thu, 15 Oct 2009 01:35:27 GMT —
The cash-for-clunkers deal may be long gone, but now, thanks to a special sales tax allowance from the IRS, buying a new car just got a bit more appealing.
Irma Trevino with the IRS explains. This deduction is going to be a credit on their 2009 tax return for the tax payers," she said.
Those who purchased a new car, truck, motor home, or motorcycle before January 1st, 2010 and after February 17th 2009 will qualify.
A deduction on the sales that they pay either state, local or also the excise tax, those 3 kinds of taxes can be deducted on their 2009 tax return next year, said Trevino.
The best part, these cars don TMt exactly need to be budget friendly. The credit will cover up to a $49,500 dollar purchase.
Plus, the income limit is high enough nearly everyone can qualify.
The cap-off for individuals is $125,000 and $250,000 for couples. Once you reach $135,000 and $260,000, respectively, you no longer qualify.
While the cash for clunkers was a huge success, the aftermath hasn't been as successful. So the government is hoping this will help bring up car sales once again and steer the country in the right direction.
We're helping the economy. We TMre helping those car dealerships out there that are trying to make sales," explained Trevino.
The IRS is encouraging people to take advantage of the new car tax break while they still can.
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