Tax break on a new car purchase?
 

Hello guys,
I heard IRS is offering a tax break on a new car purchase that are done before 12/31/2009.
Does this apply to ALL manufacturers?
What kind of tax benefit are they talking about? Full return of the sales tax paid for the vehicle?
I don't see the hype about this deal and am kinda bummed. Cuz I think it's a great deal.
Anyone have further info about this tax break?
Thanks,

Dan

Sales tax paid for a new vehicle can be used as an itemized deduction against your federal income taxes.

Dig.

:tophat:

Used car too.

really?

I'm emailing my accountant today!

No. I read it only applies to new car purchases of up to $49500

Dan

... or the portion of taxes paid on the first $49500 of a new car, if you get something more expensive than that (ie. buying a $50000 car doesn't make you ineligible, you just don't deduct taxes on that last $500).

This is a 2009 tax CREDIT. That means that they will give you back, dollar for dollar, any sales tax you paid on your NEW vehicle, up to a purchase price of $49,500.

In Texas (and most other states), you get a tax DEDUCTION for the value of the sales tax on any vehicle (used or new). So, you don't get it all back, just a portion of it.

[QUOTE=JonBoy,Nov 25 2009, 12:28 PM] This is a 2009 tax CREDIT.

Yes, up to the amount of taxes paid on $49,500 of the purchase price.

Which is it? You contradicted yourself.

For the last several years, it's been a tax deduction, not a credit (but I'm not up to speed on all the incentive handouts)