Tax Deductions On New Cars Ends December 31st
From CATA (Chicago Automobile Trade Association)
The “cash for clunkers” program grabbed the headlines earlier this year. But another government program in effect until Dec. 31 can put money in the pockets of new-car buyers.
The American Recovery and Reinvestment Act, in effect since February, gives consumers incentive to buy a new vehicle now. Many car buyers can deduct state and local taxes paid on the purchase of a new passenger vehicle from their federal income tax.
Deductions are allowed for:
- the first $49,500 of a vehicle’s purchase price;
- vehicles that weigh less than 8,500 pounds; and
- taxpayers whose modified gross income is under $125,000 for individuals or $250,000 for jointly filed returns.
The tax deduction can be claimed on a new vehicle of any model year – when the original use commences with the taxpayer.
Consumers who have questions about the tax dedcution may call any sales representative at Apple Chevrolet at 708-429-3000 or send an email request to sales@applechevy.com.
