The economic stimulus package includes a tax break for qualified individuals who purchase a new car, light truck, motorcycle or mobile home in 2009 (effective after the bill is signed into law).
You can deduct the state sales tax owed on the purchase of a new car provided the car cost less than $49,500. You can claim the deduction if you are single and your adjusted gross income is below $125,000; married couples filing a joint tax return can claim the full deduction if their AGI is below $250,000. The deduction phases out between $125,000 and $135,000 for individuals and for married couples with income between $250,000 and $260,000.
Get Suze's new car action step
You can deduct the state sales tax owed on the purchase of a new car provided the car cost less than $49,500. You can claim the deduction if you are single and your adjusted gross income is below $125,000; married couples filing a joint tax return can claim the full deduction if their AGI is below $250,000. The deduction phases out between $125,000 and $135,000 for individuals and for married couples with income between $250,000 and $260,000.
Get Suze's new car action step
From The Oprah Winfrey Show Recession Rescue with Suze Orman
Published on April 02, 2009
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Please note: This is general information and is not intended to be legal advice. You should consult with your own financial advisor before making any major financial decisions, including investments or changes to your portfolio, and a qualified legal professional before executing any legal documents or taking any legal action. Harpo Productions, Inc., OWN: Oprah Winfrey Network, Discovery Communications LLC and their affiliated companies and entities are not responsible for any losses, damages or claims that may result from your financial or legal decisions.
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