New Car Sales Tax Deduction for 2011, 2012
61New Car Sales Tax Deduction
Did you buy a new vehicle this year? If so you may qualify for an additional tax break.
The American Recovery and Reinvestment Act allows taxpayers to take a deduction for state and local sales tax paid on the purchase of new vehicles. This includes cars, light trucks, motor homes and motorcycles.
The deduction is available on new vehicles purchased starting Feb. 17, 2009. In states that don't have sales tax, the law provides a deduction for other taxes or fees paid, so you will need to research the deduction allowed at your State Government website. This deduction is available whether or not a taxpayer itemizes deductions on Schedule A.
The limit for this deduction is $49,500 for the taxes and fees you have paid for the purchase price of an eligible 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 for this additional deduction.
Used cars are not eligible for this deduction, new vehicles only (you must be the first owner of the vehicle). Leased vehicles and rentals do not qualify for this tax deduction. The law specifies that the deduction applies to the purchase of qualified new vehicles. A lease is not a purchase for the purpose of this deduction.
There is no limit on the number of cars for which you can claim the car tax deduction, provided each car is a qualified new vehicle.
For more information on the new car sales tax deduction, visit TurboTax online.
New Car Sales Tax Deduction
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can you purchas a new car after dec 31 2011 and be eligible for a state tax (florida) deduction for 2011under the Recovery and reinvestment act ?
Just purchased a Honda Pilot Oct 2012 Do we qualify for a tax deduction?
Does this cover the electric cars too? Please do inform me..
I took this deduction on my 2009 return and I see it is also listed on my 2010 form. Can I take this deduction again?
I bought a new car in August 2010 and live in Texas. Actually, I found the IRS Sales Tax Deduction Calculator and the State and Local General Sales Tax Deduction Worksheet (manual) on page A-4 of Form 1040 Instruction give you different result, no matter with or without the new motor sales tax. Either one or both is incorrect.
Mark,
If you took the deduction on turbo tax it is incorrect. Go back to the deduction section and look for info. It will open up a window that will give the dates as before Jan 1, 2010. VERY MISLEADING
If you bought your car in 2010 you are out of luck. You cannot deduct. It's all Obama's fault.
I purchased a new travel trailer will that work?
I know motorhomes qualify.
My 2010 Honda Insight wasnt credited for the hybrid or the tax deduction...I used Turbo Tax also and it kept saying the date of my car didnt count. The car came out Jan 1, 2010 I didnt buy it till Jan 27, 2010
I just did my income tax using Turbo Tax and the deduction is in there..
So not happy...doing my taxes, bought new vehicle 12-31-2010, and apparently CANNOT deduct sales tax. Looks like the new vehicle sales tax deduction is good on purchases through 12-31-2009...BOO
we bought a new car last march 2010 is it tax deductible?
If you live in Texas and bought a new car in 2010 the sales tax can be deducted and added to the standard sales tax deduction. I went to IRS.gov and put a search in for sales tax calculator and it takes you through a brief interview and calculates how much you can enter on line 5 of Schedule A.
To Chigago CPA:
I am on Social Security Dissability and have no withholding tax. I bought a 2010 in December in Texas. Still no clear answer to if I can deduct the sales tax...
It was NOT extended, however, if you itemize your deductions you can elect to deduct state sales tax if they are greater than the state income taxes withheld in your paycheck.
Can anyone say with accuracy if the sales tax deduction has been extended to vehicles PURCHASED in 2010?
looks like it was not extended for 2010
it is good
I'd like to know too, as I bought mine in 11/2010... I keep hearing that it's been extended, but am not finding anything to confirm that fact.
what if i bought my car in october of 2010?
this page does not have a date showing when the article was written.
kxdorey 4 months ago
Tax breaks in tough economic times are always a good idea. Voted up.