photo by thebusybrain (cc-by)
Did you miss out on Cash for Clunkers? Those in the market for a new car, truck, motor home or motorcyle might qualify for a deduction in taxes this year. But time is running out.
Learn more about the government grants programs.
As part of the stimulus bill, you may purchase a qualifying vehicle before January 1, 2010 and deduct sales tax and excise taxes — possibly saving you thousands of dollars. The deduction can be applied to up to $49,500 of the purchase price of the vehicle. That’s a high enough limit that many cars in America’s inventory will qualify. If you are in a high-income tax bracket the deduction is reduced or eliminated.
This is one of the easier deductions to take advantage of because it does not require you to itemize deductions on your tax return. You will simply add this special deduction to your standard deduction, instantly lowering your tax liability.
