New Car on the Brain?
If you purchased a new vehicle* after Feb 16th of this year, 2009 -- or if you plan to purchase one before January 1st, 2010 - you may qualify for a deduction of the state and local sales taxes paid on the vehicle, with a purchase price of up to $49,500.
You qualify for the deduction even if you do not itemize.
The deduction is phased out between $125,000 and $135,000** if you are an individual, and between $250,000 and $260,000** if you are filing a joint return.
You'll claim the deduction on your 2009 return.
This may be as good a time as any to satisfy your desire and help the economy out at the same time. Can you say win-win?
* car, light truck, motor-home, motor-cycle.
** your modified adjusted gross income (MAGI).