Thinking of Buying a New Car This Year?
As we all know the automotive industry is having a VERY bad year. If you have the money, this may be a good year to buy a new car. Many car companies are offering great deals (0% interest on 5 years) and prices are lower than ever. If you need even more incentive, the IRS just released notice that you may be able to deduct state and local excise taxes paid on the car purchase on your 2009 tax returns.
Accprding to IRS Tax Notice IR-2009-30, 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.
There are some restrictions for those making over $125,000 and the vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010, to qualify for the deduction.
I don't know about you but it makes me take a closer look at that Saturn Sky I've had my eyes on!
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