Are you upset that you weren’t able to take advantage of the cash for clunkers program? Don’t worry, it’s still possible to buy a new economy car at a bargain thanks to the car tax credit.
Any person who purchases a new vehicle worth up to $49,500 between February 17 and December 31, 2009 may be entitled to write off state and local sales taxes, as well as excise taxes paid. Car buyers in states that don’t have a sales tax will still be eligible for a tax break if the state imposes a flat fee on the purchase of vehicles or a fee based on the price you pay.
The car tax break is only applicable for the purchase of new cars, light trucks, motor homes and motorcycles.
To be eligible for the car tax break, you must:
- Have a modified adjusted gross income less than $135,000 if you’re single
- Have a modified adjusted gross income less than $260,000 if married and filing jointly
Take note that the car tax break starts phasing out if you earn more than $125,000 if single, or $250,000 if married and filing jointly.
The cash for clunkers program generated a much-needed sales boost for the struggling auto industry. The best selling economy cars under the cash for clunkers program are as follows:
- Toyota Camry: 54,396
- Ford F-Series: 45,590
- Honda Civic: 43,294
- Toyota Corolla: 43,061
- Honda Accord: 39,726
- Chevy Silverado: 32,421
- Honda CR-V: 30,284
- Nissan Altima: 26,833
- Ford Focus: 25,547- Hyundai Elantra: 21,673
The car tax break is expected to sustain the sales momentum.
For assistance in buying a car, sign up on the box at the right.
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