Posted on | February 22, 2010 | Comments Off on New Vehicle Sales Tax Deduction
New Vehicle Sales Tax Deduction
If you purchased a new automobile in 2009 you can possibly deduct the sales and excise tax you paid during the purchase. There are a number of different things to consider when determining if your taxes are deductible. State and local taxes are deductible up to $49,500, this is a very nice place to begin.
There is a limit on the weight of your new car, truck, or motorcycle, 8,500 pounds. And purchases must have taken place between the 19th of February 2009 and the end of the year. Some special exceptions are available if you don’t pay state tax or you file the 1040ez. You can still take the deduction in both cases. For those that file something other than a Schedule A, add the deduction to you standard deduction.Complete the Schedule L to determine your standard deduction.
Finally, there are phase out ranges for single filers and joint filers. Single filers are phased out for modified adjusted gross income in the range from $125,000 to $135,000. Joint filers are phased out between $250,000 and $260,000.