New Vehicle Sales Tax Deduction 2011, 2012
59New Vehicle Sales Deduction
Contrary to what you may have heard, people do in fact still buy brand new cars, even with the economic conditions of the recent years. What’s more is that buying a new car sets you up to claim a new vehicle sales tax deduction.
Alongside what’s referred to as the American Recovery and Reinvestment Act, you get to take a tax deduction on the local and state sales tax which you paid on any brand new cars, motorcycles, light trucks, and even motor-homes. That’s a pretty sweet deal.
If you purchased any of the aforementioned qualifying new vehicles between the period of February 17th 2009 and December 31 of 2009, then you can take the new vehicle sales tax deduction. But this will only be true if you purchased the vehicle in 2009, and paid it's sales tax in 2010.
The new vehicle sales tax deduction does vary from state to state so be sure to look up the relevant information for you your situation. Whether or not you itemize your tax return will not be a determining factor in your eligibility for the new vehicle sales tax deduction.
Unfortunately, used cars do not qualify for the sales tax deduction, hence the “New” in the title. And it is worthwhile to know that the limit of this tax deduction is $49,500 for any sales tax or related fees to the actual purchase.
You are not limited to just one or two vehicles; however they do have to literally be “New” vehicle purchases to be eligible for the vehicle deduction. A lease, while very expensive, does not get you into the new car tax deduction club.
If you’d like to know a little more about this deduction as well as many other deductions you may be missing, check out a website like TurboTax Online and browse their vast and streamlined free content. Whether it’s in an article or through a question forum composed of real tax experts and other real taxpayers who have experience with this subject, you’ll find your answer there.
New Car Sales Tax Deduction
