Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has announced that taxpayers who buy a new passenger vehicle in 2009 may be entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax returns. The deduction is limited to the state and local sales and excise taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle. The amount of the deduction is phased out for taxpayers with modified adjusted gross income between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers. The deduction is available for vehicles purchased after February 16, 2009, and before January 1, 2010, and may be claimed regardless of whether taxpayers itemize deductions on their returns. Taxpayers may not take this special deduction on their 2008 tax returns.

IR-2009-30,
2009FED ¶46,306

Other References:

 
Code Sec. 164

  CCH Reference - 2009FED ¶9502.0385

  CCH Reference - 2009FED ¶9502.35

  CCH Reference - 2009FED ¶9502.70

  CCH Reference - 2009FED ¶9602.7244

  CCH Reference - 2009FED ¶9602.87

  Tax Research Consultant

  CCH Reference - TRC INDIV: 45,104.15