Welcome Guest. Register Now!  


Itemized Deductions Schedule-A


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 11-26-2009, 07:35 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,399
Blog Entries: 3
IRS Allows deduction for sales & use tax imposed on purchase of new vehicles in 2009!

The IRS has stated that in 2009, a taxpayer can deduct the state or local sales and excise taxes imposed on the purchase of a qualified motor vehicle after February 16, 2009, and before January 1, 2010.

What is a Qualfied Motor Vehicle?
The IRS has defined a a qualified motor vehicle as "a passenger automobile, light truck, or motorcycle, the original use of which begins with that purchaser and that has a gross vehicle weight rating of 8,500 pounds or less. A qualified motor vehicle also includes a motor home, the original use of which begins with that purchaser."

However, the IRS has stated that the amount of tax a taxpayer is able to deduct is limited to the tax that is imposed on the first $49,500 of the purchase price of the vehicle. The deduction is phased out over a $10,000 range that begins when modified adjusted gross income is more than $125,000 ($250,000 if married filing a joint return). No deduction is allowed when modified adjusted gross income is equal to or more than $135,000 ($260,000 if married filing a joint return).

The new deduction can be used to increase the amount of your standard deduction or you can take it as an itemized deduction (if you are not electing to take the state and local general sales tax deduction).

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Does New Jersey allow the Federal Sales Tax Deduction for Income Tax purposes in 2009 TaxGuru New Jersey 0 09-29-2009 08:15 PM
Can a 2009 home purchase be treated as a 2008 purchase to claim Home Owners Credit? TaxGuru Homeowner Tax 0 08-15-2009 12:31 AM
The ARR Act of 2009 offers a Sales Tax Deduction for purhase of new vehicle in 2009. TaxGuru For 2009 0 07-03-2009 09:50 AM
Sales Tax Deduction for Vehicle Purchases 2009 Samatg Tax News 0 02-23-2009 04:00 PM
Vehicle Purchase - Deduction Question MrJ71 Itemized Deductions 1 02-04-2009 10:34 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning