The American Recovery and Reinvestment Act of 2009 provides for the deduction of sales tax paid on the purchase of qualified new vehicles through 2009. Qualified vehicles include passenger autos, light trucks and motorcycles with a gross vehicle weight rating of 8,500 pounds or less. Some motorhomes may also qualify. In addition, you must be the original purchaser between February 16, 2009 and January 1, 2010. The deduction applies to the first $49,500 of the vehicles cost.
The IRS recently clarified that taxpayers can take the deduction on more than one new vehicle purchase. The deduction is phased out based on a modified adjusted gross income starting at $125,000 ($250,000 if married filing a joint return).
Please contact one of our offices for further information or if you are considering purchasing a new vehicle in 2009.