Daily Auto News Treasury Announces New Tax Deduction for Car Buyers
Daily Auto News
Fox News reports, “The Department of Treasury today announced that a tax deduction for the purchase of new motor vehicles is available in states that do not have a state sales tax.” The department had previously disclosed that “Under the American Recovery and Reinvestment Act of 2009, taxpayers who buy a new motor vehicle this year are entitled to deduct state or local sales or excise taxes paid on the purchase.” Now, the department has said that “Taxpayers who purchase a new motor vehicle in states that do not impose state sales or excise taxes are entitled to deduct other fees or taxes imposed by the state or local government that are based on the vehicle’s sales price or as a per unit fee. According to the IRS and Treasury, the intent of the provision is that these other fees or taxes could qualify for purposes of the special tax deduction..
Jalopnik adds, “To qualify for the deduction, the vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010. The special deduction is available regardless of whether taxpayers itemize deductions on their returns. Taxpayers can claim this special deduction only on their 2009 tax returns next year.”
The deduction is available on up to the first $49,500 in value of any new car, truck or SUV.
The move is just the latest in a string of government attempts to revive auto sales. Check out our Cash for Clunkers page for details on another government assistance program for new car shoppers.
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