Sales Tax Break for New Car Purchases
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.
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And as I have said repeatedly, until we get our credit markets unstuck, it may not be much help for the government to come in with these sorts of breaks. What good does it do you if you can't get a loan because lenders are too scared to lend?
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