As expected, car sales have slowed down since the cash-for-clunkers program ended. However, there is still a car sales tax deduction incentive for consumers who will purchase a brand new car, truck, motor home or motorcycle before January 1, 2010. This car sales tax deduction will serve as credit on the car buyer’s 2009 income tax return. Specifically, consumers may be able to deduct the sales tax that they pay from state, local or even excise taxes. The government is hoping that this program will help induce sales for the struggling auto industry.
Aside from the tax deduction, the program also has very lenient income qualification limits: $125,000 annual salary for individuals and $250,000 for couples. Most people can easily qualify. The car sales tax deduction incentive isn’t restricted to economy vehicles. Consumers can purchase a brand new vehicle costing up to $49,500 and still qualify.
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1 Response
[...] 16 onward, you can deduct the state or local sales tax. This also goes for excise taxes. The break is limited to the tax as it applies to $49,500 of the purchase price. However, there is no limit to [...]
Posted on February 3rd, 2010 at 1:30 pm