Tax Break for New Auto Purchase

The Internal Revenue Service announced recently that taxpayers who buy a new passenger vehicle during 2009 may be entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax returns.

If you have brought a new car, truck or SUV, this deduction could enable you to buy now and get cash back later on your 2009 tax return, an attractive incentive.

This is particularly good news for autoshoppers shoppers. The deduction applies to any new vehicle purchased after 2/16/09 and before 1/1/10.

Naturally, there are some restrictions and exceptions. To get all the facts, contact the IRS or consult your tax advisor.  The tax benefit to a purchaser will depend on individual tax circumstances and may be reduced or eliminated based on the purchaser’s modified adjusted gross income. Customers should consult their tax advisors or the IRS to confirm processes and the amount of tax deduction that they may claim.