Purchase a Car in 2009 – Get a Sales Tax Deduction – There’s Still Time
WASHINGTON — With 2010 models arriving in dealer showrooms, the Internal Revenue Service reminds taxpayers that purchasing a new car, light truck, motor home or motorcycle could qualify them for a special deduction for the state and local sales and excise taxes on their 2009 tax returns.
Purchases made before Jan. 1, 2010, will qualify for this deduction under the American Recovery & Reinvestment Act of 2009 (ARRA).
The deduction is limited to the sales and excise taxes and similar fees paid on up to $49,500 of the purchase price of a new vehicle. The deduction is reduced for joint filers with modified adjusted gross incomes (MAGI) between $250,000 and $260,000 and other taxpayers with MAGI between $125,000 and $135,000. Taxpayers with higher incomes do not qualify.
Taxpayers who make qualifying new vehicle purchases this year can estimate the deduction with the help of Worksheet 10 in IRS Publication 919, How Do I Adjust My Withholding? Lines 10a to 10k of the worksheet show how to take into account purchases above the $49,500 limit, as well as the reduced deductions for taxpayers at higher income levels.
The special deduction is available regardless of whether taxpayers itemize deductions on their returns. Taxpayers who do not itemize will add this additional amount to the standard deduction on their 2009 tax return.
For those that have questions about the deduction for sales tax and other fees, these questions and answers might help. A video on the IRS Youtube.com channel and audio podcasts in English and Spanish are also available to help taxpayers take full advantage of the deduction.
Shameless Self Promotion – Be Sure to Tune in to OC Talk Radio Thursday at 4pm
Read on to learn more about my upcoming interview on:
Critical Mass NOW on OCTalkRadio.net
Critical Mass: The Radio Show airs on Monday, Tuesday and Thursday from 4pm to 5pm.
Monday at 4:00 pm Ric Franzi will interview Rita Ferguson of G&F Concrete Cutting and David Baker of MessageBroadcast. Rita will be discussing how she and her husband have built a differentiated business in the highly competitive construction industry and David will talk about how his firm responds to changing customer requirements and the advancement of technology. More information on Rita can be found at http://www.gfconcretecutting.com/ and on David at http://www.messagebroadcast.com/.
Tuesday at 4:00 pm Doug Gfeller will interview Larry Peterson of Peterson Oliver & Poll and Tom Newmeyer of Newmeyer & Dillion LLP. Larry will be talking about how a business owner should approach the possibility of litigation in a legal dispute and Tom will be discussing the impact of the economic slowdown on the legal profession. More information on Larry can be found at http://www.poplaw.com/ and on Tom at http://www.ndlf.com/ .
Thursday at 4:00 pm Ric will interview Stacie Clifford Kitts of Clifford Kitts CPA and Kelly Adams of KJA Associates. Stacie will talk about how her use of social media has affected her business and Kelly will be discussing the role performance management plays in the long term success of a firm. More information on Stacie can be found at http://www.clifford-kitts-cpa.com/ and on Kelly at http://www.return-on-humancapital.com./
To listen live visit: octalkradio.net or listen to archives of our previous show at http://ceopeergroups.podbean.com as well as other podcasting services.
You can find the show on iTunes as a business podcast by typing Critical Mass: The Radio Show.
Critical Mass: The Radio Show is the premier business talk show on OCTalkRadio.net featuring interviews with leading business executives. The goal of the show is provide information to help our audience of business owners and top executives make better, more informed decisions.
To learn more about Doug and Ric visit (www.criticalmassforbusiness.com)
