Sales Tax Deductible For New Trucks

Sales Tax Deductible For New Trucks

Following yesterday's warranty guarantee remarks from President Barack Obama, as part of the government's automotive bailout plan, the Internal Revenue Service has issued guidelines for eligible buyers to deduct state and local sales taxes paid on new-vehicle purchases in 2009.

The federal tax deduction is limited to sales taxes paid up to the first $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle, bought between Feb. 16, 2009, and Jan. 1, 2010. 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.

The deduction is available regardless of whether buyers itemize their federal tax return. It can't be applied to 2008 tax returns.


This tax deduction on new vehicle purchases has been allowed in states without an income tax for years. So it may not be anything new to some of you.

This is not cool for people who bought in January

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