| IRS offers sales tax deduciton for new vehicle purchased in 2009.
Who can qualify?
Buyers of new vehicles can deduct the sales tax paid on the purchase, even if they don’t claim sales taxes as itemized deductions. They can add the tax they pay to their standard deduction.
What are the time limitations?
This break applies to new cars, motor homes, light trucks and motorcycles purchased after February 16, 2009 and before January 1, 2010.
What are the limits on the purchase price of a new vehicle?
Sales tax paid on the first $49,500 of cost qualifies.
Does the benefit phase out according to the taxpayers AGI?
The benefit does indeed begin to phase out for married couples with AGIs over $250,000 and singles with adjusted gross incomes over $125,000, and is completely gone for single filers with adjusted gross income of $135,000 or more or joint filers with AGI of at least $260,000.
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