The Federal Economic Stimulus Package that became law on February 17, 2009 allows for the deductibility of vehicle sales tax (i.e. titling tax).
Example:
If you purchase a $30,000 vehicle at 6% tax, you can deduct $1,800.00 on your Federal income tax return (even if you do not itemize).
What Customers Qualify for the Deduction?
Individual customers with modified adjusted gross income of less than $125,000 or joint-filers making less than $250,000 a year in 2009 qualify for the deduction. This is an “above the line” deduction (for itemizers and non-itemizers) on your Federal tax return.
Effective Dates:
Any new vehicle purchased from February 17, 2009 through December 31, 2009 – this incentive is NOT retroactive.
What New Vehicles Qualify for the Deduction?
Any new vehicle under 8,500 pounds gross vehicle weight qualifies. Any vehicle sold for under $49,500 qualifies for the full deduction. Consumers may deduct sales taxes on the first $49,500 of any vehicle sold above this price.
Please contact Criswell Chevrolet if you have additional questions and consult your tax advisor.
