01-13-2010, 08:33 PM
A reminder now that tax time is upon us: If you bought your NEW car between Feb. 17,2009 and Dec. 31,2009 you can generally deduct the sales tax. For details go to:
You do NOT have to itemize deductions to get the credit.
01-13-2010, 10:31 PM
Sales Tax Deduction for Vehicle Purchases (http://www.irs.gov/newsroom/article/0,,id=204519,00.html)
01-19-2010, 12:45 PM
Do you know what I should enclose with my return to get this? Thank you for posting this!
01-19-2010, 02:21 PM
You got me there. I guess your instruction manual with your tax returns will tell you.
01-19-2010, 10:45 PM
Go to www.irs.gov and download Publication 553 (for the details) and Publication 919 (for the worksheet) to find out how the sales/exise tax deduction works – it's basically going to increase your standard deduction amount. The limitations are: (1) your new vehicle, purchased between February 16 and December 31, 2009, must have a GVWR under 8,500 pounds (no problem for Foci); (2) you can only deduct the tax on the first $49,500 of the vehicle's purchase price (again, no prob); and (3) there is a sliding scale for your adjusted gross income that phases out the deduction if you have an AGI over $125K (single)/$250K (married filing jointly). Anybody got a problem with that one? (Then you don't really have a problem, lucky you.)
01-21-2010, 11:19 PM
Hmmm. I bought two new vehicles in '09, but traded the '09 in on an '10, and paid the difference in sales tax for both.
Hmmm. Wonder how THAT works?
01-21-2010, 11:21 PM
well hell too bad it can't be "new-to-me" deductibles....
01-22-2010, 05:15 AM
Of course, anyone who saves on their taxes as a result of this thread a rep would be appreciated :)