Tax Break Available for New Car Purchases

Just learned there is a temporary tax incentive for the purchase of a new car, light truck, motor home, or motorcycle during 2009. The deduction is available for the cost of all state and local sales and excise taxes paid on up to $49,500 of the purchase price. The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers. The vehicle must be purchased after Feb. 16 and before Jan. 1, 2010. The deduction is available regardless of whether a taxpayer itemizes deductions on their return but can't be taken on 2008 tax returns. For more info contact Bob McNamara, 202/383-1268.