Through the American Recovery and Reinvestment Act of 2009, car buyers are permitted to deduct sales/excise tax from their yearly income tax bill for vehicles purchased before the end of the year.
What Taxes are Deductible?(1)
* State Motor Vehicle Sales
* Local Motor Vehicle Sales
* Motor Vehicle Excise Tax
What Customers Qualify for the Deduction?
* Individual customers with modified adjusted gross income of less than $125,00 or joint filers making less than $250,000 a year in 2009 would qualify for the deduction.
* Deductible as an "above the line" (for itemizers and non-itemizers) deduction on federal tax return.
Effective Date
* New vehicle purchases shall apply to purchases on or after February 17th, 2009 until December 31st, 2009
What New Vehicles Qualify for the Deduction?
* Any new vehicle under $8,500 pounds gross vehicle weight
* New vehicles of any model year-when the original use commences with the tax payer
* Any vehicle sold for under $49,500 qualifies for full deduction. Consumers may deduct sales taxes on the first $49,500 of any vehicle sold above this price.
Please see your Kent Rylee salesperson or send an e-mail to stephanie@kentrylee.com for more information.
1) For purposes of this section, the term "qualified motor vehicle taxes" means any state or local sales or excise tax imposed on the purchase of a qualified motor vehicle."
This is a generalized summary. Please consult a qualified tax attorney or professional.
Information provided from National Automobile Dealers Association
Wednesday, February 18, 2009
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