There is a special tax break available for new car purchases in 2009 - if you are thinking of buying one, you will want to check into this.
Taxpayers are receiving a temporary tax incentive that will be available to them for the purchase of a new car, light truck, motor home or motorcycle during 2009. The deduction will be available for the cost of all state and local sales and excise taxes paid on up to $49,500 of the purchase price. The amount
of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers (this probably eliminates most real estate agents - right?) and between $250,000 and $260,000 for joint filers. The vehicle must be purchased after February 16, 2009, and before January 1, 2010, to qualify for the deduction. The special deduction is available regardless of whether a taxpayer itemizes deductions on their return. The deduction may not be taken on your 2008 tax returns.
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Thanks for the good info... always like new tax deductions. However, it probably doesn't benefit the taxpayer if they are in the alternative minimum tax situation...
Hi Kathleen - Thanks for the heads up on this one. I don't want to purchase a car this year, but may have to so this is good news.
Maybe wait for a larger incentive. Once GM officially goes under there will be more. Only buy one if you need to.
I wish I could buy one this year. I think I will wait a little while but thank you for sharing. I wish you the best.
Thank you for the info - our thirteen year old jeep may die this year and this would certainly ease the pain of having to purchase a new one!
It seems I always miss the boat. I bought my car last year. I bought my home before the incentives.
Kathleen - c'mon you're killin' us!!!! Who is in the Porsche?????? Anyway, a good tip and solid break for those in the market.
Cheers
Great info to get out. My daughters' dad owns a Nissan dealership in Boone, NC (close by Blowing Rock) so if anyone up that way is looking they can look up University Nissan. There uncle is at Hendrick Lexus in Charlotte, NC so anyone in Charlotte market ask for Lauren and Kristen's Uncle James. :)
Kathleen, is that your red baby in the picture.
It does look like time to replace it :-)
Is their a weight restriction? last time there was this offer the vehicle had to weigh a certain amount, which is why so many small business owners are buying BIG SUVs, Hummers, etc... .
I agree with Melissa, I believe the largest deduction comes from a GVW of #6000 lbs.
“For those thinking about buying a new car this year, this deduction may give them a little more drive to make their purchase this year,” said IRS Commissioner Doug Shulman. “This deduction enables taxpayers to buy now and get cash back later on their tax returns.”
The deduction is limited to the state and local sales and excise taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle.
I have not seen anything about weight restriction on the above description from their website, especially when they are putting motorcycles down on the list. Of course there are some big bad boy cycles too!!!!
Hmmm...should I get a 2nd bike?
Debra - bike as in peddle? or bike as in dirt? or bike as in Harley?
Well you mentioned the tax deductions above........................
Wow, good information and post. I had heard about the tax credit but had not seen anything about it in detail yet. Thanks for the information!
Ok Kathleen I am guessing you didn't understand what I meant so yes it is a Harley. :-) LOL
There's just all sorts of good news coming out of the various Stimulus bills.
Thanks Kathleen, I've sent this info on to a friend who is buying his wife a new car this year for her 50th birthday. I hope their purchase qualifies!
Kathleen,
Great info...thanks for posting it. I hadn't heard about it. I'm sure it will be much needed help for the car dealerships.