2009 New Vehicle Sales and Excise Tax Deductions

If you purchased a new vehicle between theamount to the standard deduction on their 2009
dates of February 16, 2009 and January 1, 2010,income tax return.
you might be entitled to a deduction for yourThe amount of allowable deduction phases out for
sales and excise taxes on your new vehicle.taxpayers with a modified adjusted gross income
State and local excise and sales taxes paid on upof between $125,000 to $135,000 for those filing
to $49,500 of the cost of your new vehicle mayindividually and a modified adjusted gross income
be tax deductible under this break for 2009.of between $250,000 to $260,000 for those who
Qualified vehicles include new cars, motor homes,file jointly.
light trucks, and motorcycles.Taxpayers, who do not itemize and claim a
There is a weight limit of 8500 pounds on newstandard deduction, must file an attached Internal
cars, light trucks, and motorcycles. There are noRevenue Service Schedule L.
weight restrictions on mobile homes.Remember that there are more tax credits and
States like Alaska, Delaware, Hawaii, Montana,deductions available for your 2009 new car
New Hampshire and Oregon, where there are nopurchase if you bought a hybrid or electric vehicle.
sales taxes, may meet qualifying requirements, asSome of these deductions and credits are quite
well. Any state or local fees applicable to thesizable. To qualify for some of these further
purchase of a new vehicle based upon thedeductions, you may need to file an itemized
purchase price or per unit charge in such states,return for 2009.
may qualify as a deduction.For more information on qualifying requirements
You can take this deduction, even if you do notand filing instructions, you can visit the Internal
file an itemized return. Taxpayers filing theRevenue Service website at IRS.gov.
standard deduction should add the additional