Buying a New Car in 2009?

If you purchase a new passenger vehicle in 2009, you may be able to deduct all or some of the state and local sales and excise taxes paid on the purchase, even if you do not itemize your deductions.

Eligible purchases include new cars, light trucks, motor homes and motorcycles purchased between February 17 and December 31, 2009. The deduction is limited to tax paid on $49,500 of the purchase price. In addition, total income must be below $260,000 for a married couple filing a joint return, and below $135,000 for all other filers.

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Please consult a tax preparer, professional tax advisor or a lawyer for more information.

(June 6, 2009)

[Back]