Special Tax Break Available for New Car Purchases in 2009

Here’s the latest news from the Minneapolis Realtor Association. (A great way to save money for a new house if tax breaks for other purchases!)

The IRS is reminding taxpayers of 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 is 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 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 2008 tax
returns. (Learn more)

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