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.

Prius

Problem with Electronic Brakes in Hybrid Vehicles are reported by Toyota and Ford. The problem are due to a bug in the software controling the electronics brakes. Consumers worried that the cars won’t stop when needed.

The actions came as U.S. safety regulators are widening their investigation of electronic systems in vehicles, focusing on Toyota and Ford Hybrid models.

The National Highway Traffic Safety Administration said Thursday it has launched a formal investigation into brake concerns on the 2010 Toyota Prius. The agency said it has received 124 complaints from Prius owners about braking problems, including four accidents.

Toyota said Thursday there was a brake design flaw with its Prius hybrid, in a major new blow to the world’s top automaker, already facing a two-billion-dollar bill from massive safety recalls.

The brake trouble comes on top of accelerator pedal problems that have now spread to Britain and raised fresh questions about whether Toyota sacrificed quality in its drive to overtake General Motors as global number one.

Ford Fusion Hybrid

DETROIT, Nov 17 (Reuters) – Ford Motor Co’s  Fusion mid-size sedan was named Motor Trend magazine’s 2010 “car of the year” on Tuesday, adding to the perception that changes to the No. 2 U.S. automaker’s vehicle lineup are gaining traction.

The Fusion was chosen best of 23 new or significantly upgraded vehicles that were eligible for the award after a week of testing, Motor Trend said.

Motor Trend said the full range of Fusion models was impressive to the judges, from the four-cylinder entry level vehicles to the all-wheel drive sport and hybrid versions.

The Fusion, which has become one of the top 10 selling vehicles in the United States and was redesigned for 2010, exceeded its previous annual sales peak earlier in November. The car was launched initially by Ford in 2006.

Ford posted a nearly $1 billion third-quarter profit that surprised Wall Street analysts this month and is the only large U.S. automaker not to reorganize in bankruptcy with U.S. government support in 2009.

The automaker’s shares reached a more than two-year high on Tuesday, a day after billionaire investor George Soros’ hedge fund disclosed taking a 7.3 million share stake in Ford during the third quarter.

U.S. 2009 sales of the Fusion were up 15 percent through October at 148,045 but trail Toyota Motor Corp’s (7203.T) Camry and Honda Motor Co Ltd’s (7267.T) Accord in the mid-size sedan segment, one of the key areas in the U.S. market.

Dearborn, Michigan-based Ford has looked to set itself apart from U.S. rivals General Motors Co [GM.UL] and Chrysler Group LLC, which reorganized under government-funded bankruptcies this year, and increasingly uses Toyota and Honda as benchmark competitors.

Ford’s sales of the Fusion surpassed the previous full year sales record of 149,552 vehicles earlier in November. That record was set in 2007.

Sales of the vehicle have helped keep Ford’s U.S. sales declines for 2009 slower than the drop in the industry overall. Through October, Ford’s U.S. sales are down 20.4 percent for the year, while the industry is down 26 percent.

Ford shares were up 22 cents, or 2.5 percent, at $8.93 Tuesday on the New York Stock Exchange. Earlier on Tuesday, the stock reached $9, a more than two year high that is also a nearly 29 percent rise since Ford posted its third quarter earnings in early November.