How Do You Deduct Sales Taxes On New Car Purchases?
The stimulus plan should keep new car buyers happy because it allows consumers to deduct sales taxes on news car purchases in 2009. This helps not only the battered auto industry, but should boost consumers to spend money. This article shows how consumers can deduct sales taxes on new car purchases. What is the deduction for sales taxes and how does it work. Congress thought it would be a good idea to boost consumer spending aimed at the auto industry by allowing consumers to deduct car sales taxes for the 2009 year. Congress almost passed a bill that allows them to deduct the interest on car payments too, but the cost of this was too expensive. The sales tax deduction for new cars is part of the stimulus bill that President Obama signed in 2009. The sales tax deduction for new car purchases is limited to new cars purchased paid on up to $49,500 of the purchase price of the new car. The limited tax deduction is also phased out for taxpayers whose modified adjusted gross income is betwe
