The Internal Revenue Service announced that taxpayers who buy a new passenger vehicle after February 16, 2009 and on or before December 31, 2009 may be entitled to deduct the state and local sales and excise taxes paid on their 2009 tax returns. The deduction is limited to the state and local sales and excise taxes paid on up to the first $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 married taxpayers filing a joint return. Individual taxpayers whose modified adjusted gross income exceeds $135,000 and married taxpayers whose modified adjusted gross income exceeds $260,000 cannot take this deduction.
The special deduction is available regardless of whether or not you itemize deductions on your 2009 income tax return. This deduction is not available for cars or trucks purchased in 2008 and cannot be taken on your 2008 income tax return.
To ensure compliance with requirements imposed by the IRS, I inform you that any U.S. federal tax advice contained in this document is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter that is contained in this document.
For additional Information please contact:
Robert K. Minniti, CPA, CFE, Cr,FA, CFF, MBA
Website: http://www.minnitiaccounting.com
LinkedIn: http://www.linkedin.com/in/robertminniti
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