Posted on 10/11/2009 10:52:24 AM PDT by Graybeard58
WASHINGTON — With 2010 models arriving in auto dealer showrooms, the Internal Revenue Service reminds taxpayers that buying a new car, light truck, motor home or motorcycle could qualify them for a special deduction for state and local sales and excise taxes on their 2009 tax returns.
Purchases made before Jan. 1, 2010, qualify for this deduction under the American Recovery & Reinvestment Act of 2009. The deduction is limited to sales and excise taxes and similar fees paid on up to $49,500 of the purchase price of a new vehicle.
The deduction is reduced for joint filers with modified adjusted gross incomes between $250,000 and $260,000, and other taxpayers with modified adjusted gross incomes between $125,000 and $135,000. Taxpayers with higher incomes do not qualify.
Taxpayers who make qualifying purchases this year can estimate the deduction with the help of Worksheet 10 in IRS Publication 919, "How Do I Adjust My Withholding?", available at www.irs.gov/pub/irs-pdf/p919.pdf.
Lines 10a to 10k of the worksheet show how to take into account purchases above the $49,500 limit, as well as the reduced deductions for taxpayers at higher income levels.
The special deduction is available regardless of whether taxpayers itemize deductions on their returns. Taxpayers who do not itemize will add this additional amount to the standard deduction on their 2009 tax return.
So the price of a new car will simply rise to take advantage of the break.
The IRS pimping the auto industry. Disgusting.
1.How Much?
2. Does it ‘starve the beast’? [Usually I wouldn’t recommend anyone take Government money]
LOL
Great minds and all that.
So I buy a $40K new truck and I get a $3,200 (8% sales tax) deduction?
I’m gonna live with my ‘07 Silverado another year or two. I’ll not buy another GM, but I’d like to see new offerings from the competition. I really like the Tacoma crew cab 4x4, but I just can’t get over how ugly it is to me.
They’ll have too. Many still haven’t seen the Cash For Clunkers money from the Feds yet.
The Deceivers In D.C. At work to break and bankrupt the country.
That may help Japanese and Korean car makers....
The deduction is reduced for joint filers with modified adjusted gross incomes between $250,000 and $260,000, and other taxpayers with modified adjusted gross incomes between $125,000 and $135,000. Taxpayers with higher incomes do not qualify.
Just another example of our holier-than-thou lords telling us what our priorities and take-home pay should be
why such a narrow range?
What about somebody who makes less?
WTF?
Yeah...uh....isn’t there something in legal terminology called...”vested interest”?
Our founding fathers aren’t just rolling in their graves at the corrpution and stupidity in DC....they’re probably cussing in their graves as we speak. What a waste of a once great nation.
Check out the 2010 Ford F-150 SVT Raptor.
Thats the range where the reduced modifications take place. Any less than that gets the full deduction.
Yes, the new crop of kids they’ve let into the design studio are blind crack babies whose only tool appears to be the ugly stick.
This is a subsidy for high sales tax locales.
For instance, the Chicago sales tax is 10.25%!
Why would anyone buy a car in the city when they can save large amount just by driving out of the county?
So true. Back when the small pickups first appeared and were making inroads in the American market, GM, et al asked Congress for help. Congress passed a $600 tariff on them. GM, et al immediately jacked up their truck prices $500. When questioned, a Ford rep, speaking for the Detroit mindset, called it "competitive pricing".
The IRS already pimps mortgaged homes and churches that say nothing about politics. What’s a little more pimping?
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