Can qualified motor vehicle taxes be deducted for purposes of the alternative minimum tax (AMT)?
Yes. While the deduction for sales taxes elected in lieu of income taxes is included in the list of taxes not deductible in computing alternative minimum taxable income, the Recovery Act did not add qualified motor vehicle taxes to that list of disallowed taxes. And the Recovery Act specifically allows a deduction for the new motor vehicle component of the standard deduction in calculating AMT [IRC Sec/ 56(b)(1)(E)]. Reach Out to Clients So you can reach out to clients or prospects on this issue, we’ve prepared a brief introduction and invitation that you can print to letter head or paste into an email to your clients. The introduction is in the form of Microsoft Word document. Download to your computer to save and modify as appropriate. • Dear Tax Client as to Automobile Sales Tax in 2009 Recovery Act Terence M. Myers, J.D. and Dorinda D. DeScherer, J.D. are nationally renowned writers on tax topics for such publications as Accountants Tax Weekly, Tax Return Preparer’s Letter, Nonprof
