Sponsored Links
  • Tax Return Preparation
    Affordable tax prep & accounting by local CPA! 949-857-0404, Irvine CA
    www.MaslerCPA.com/
  • Tax Problems with IRS?
    Solving IRS Tax Problems for 25 yrs Call Peter Y. Stephan 877-829-8370
    TaxResolutionInstitute.com/IRSProbs/
  • Small Business CPA
    Tax, Acctg, & Business Planning Certified Quickbooks Pro Advisors
    www.cobbcpa.com/
  • Sunset La Tax Services
    Call now for over 150 years of combined tax preparation experience.
    realpages.com/wmddnhutchinsonllc
  • Reader Mark D CPA
    Get Knowledgeable And Friendly Tax & Financial Advice.
    www.readercpa.com/
  • IRS Tax Debt Relief
    Cut your IRS tax debt. Be debt-free and live easier. Lower your bills.
    www.FreedomTaxRelief.com/
  • EA$Ytax - Tax Service
    Electronic Tax Administration All Tax Preparation Services
    ElectronicTaxAdministration.com/
  • Tax Consultation
    Low Tax Planning Call Now: 310-833-9156
    www.relevantyellow.com/Accounting-T/
  • Tax Service
    IRS problems? Your IRS problems can be solved!
    www.1040taxsolutions.net/
  • Tax Preparation
    FREE CONSULTATION! Tax & Accounting Services. 30YRS Experience.
    www.GaryCpa.com
  • IRS Tax Problem Relief
    Settle Tax Issues Affordably. Tax Team Helps Solve Your IRS Problems.
    www.JKHarris.com
  • IRS Tax Debt Help
    Reduce IRS tax debt to a fraction and be tax debt free.
    FreedomTaxRelief.com
  • Buckeye Tax Services
    Call us for tax planning services, no matter what size of business.
    www.FiveStarTax.net
  • Reduce IRS Tax Debt
    Lift Bank Levies & Tax Liens. Save 1000s. Free Consultation Today.
    TaxDefenseNetwork.com

Special Tax Break Available for New Car Purchases This Year

IR-2009-30, March 30, 2009

WASHINGTON – The Internal Revenue Service announced today that taxpayers who buy a new passenger vehicle this year may be entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax returns next year.

"For those thinking about buying a new car this year, this deduction may give them a little more drive to make their purchase this year," said IRS Commissioner Doug Shulman. "This deduction enables taxpayers to buy now and get cash back later on their tax returns."

The deduction is limited to the state and local sales and excise taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle.

The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.

IRS also alerted taxpayers that the vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010, to qualify for the deduction.

The special deduction is available regardless of whether a taxpayer itemizes deductions on their return. The IRS reminded taxpayers the deduction may not be taken on 2008 tax returns.