New Vehicle Tax Break
IRS Offers 8 Facts About the 2009 New Vehicle Sales and Excise Tax Deduction
Yesterday, the IRS released a list of eight facts about the 2009 New Vehicle Sales and Excise Tax Deduction : State and local sales and excise taxes paid on up to $49,500 of the purchase price of each qualifying vehicle are deductible. Qualified motor vehicles generally include new cars, light trucks, motor homes and motorcycles. To qualify for the deduction, the new cars, light trucks and motorcycles must weigh 8,500 pounds or less. New motor homes are not subject to the weight limit. Purchases must occur after Feb. 16, 2009, and before Jan. 1, 2010. Purchases made in states without a sales tax — such as Alaska, Delaware,. Read More.
Time Is Running Out to Qualify for Vehicle Tax Deduction
December 31st is the deadline for taxpayers who are considering buying a new car have to take advantage of the new vehicle tax deduction . Enacted under the American Recovery and Reinvestment Act (ARRA) , the deduction allows taxpayers who buy a qualifying new motor vehicle in 2009 after February 16th to deduct the state or local sales or excise taxes paid on the first $49,500 of the purchase price. Qualifying motor vehicles include new passenger automobiles, light trucks, motorcycles, and motor homes. Individuals who itemize and those who take the standard deduction can benefit from this tax break. In states without a sales tax, other taxes or fees can. Read More.
Have You Developed a Year-End Tax Strategy? Time Is Running Out
As 2009 closes in just a few days, there are some important tax changes that will help you save money and prepare to file your 2009 tax return in the spring. We have summarized many of the major changes in our blog post, “Tax Planning Strategies & Year-End Considerations” in November, and since it has been one of our most popular posts, we’ve reposted it here and encourage you to review this information again before starting the process for your 2009 tax return.
Tax Planning Strategies & Year-End Considerations
As the end of the year approaches, now is the time to evaluate your business and your personal tax strategies. By taking the time to prepare now, using this checklist, you will be able to develop a clearer picture of what your tax picture will look like while there’s still time to maximize current-year savings. Retirement Planning Look to maximize tax-deductible retirement plan contributions . The following table provides the maximum amounts that can be deferred under several popular retirement plan options during 2009.
IRS Reminds Taxpayers that Time Draws Short for Special New Vehicle Tax Deduction
As new models hit showrooms across the country, the IRS reminds buyers that purchasing a new vehicle before January 1, 2010 may qualify them for a 2009 deduction on related state and local sales and excise taxes. Part of the American Recovery and Reinvestment Act (ARRA) , the new vehicle tax deduction applies to new cars, light trucks, motorcycles or motor homes purchased after February 16, 2009.
Federal “Cash for Clunkers” Program Provides Substantial Rebate Toward New Car Purchases
Last month, President Obama signed into law the Car Allowance Rebate System (CARS) –– a new program that allows qualifying older cars to be exchanged for a generous rebate toward the purchase or lease of an eligible new car. Beginning this month and extending through November 1, 2009, the program allows for a rebate of either $3,500 or $4,500 to be paid to dealers toward either the purchase or lease of a new car. Qualifying vehicles must generally meet the following requirements: