A blog post

Did you buy a new car in 2009?

Posted on the 10 November, 2009 at 9:19 pm Written by in Taxes

If you did, you can deduct state and local sales tax from your 2009, regardless of whether you itemize or not.

 A qualified motor vehicle is a passenger automobile, light truck, or motorcycle with a gross vehicle weight rating of 8,500 pounds or less. The car has to be new. The new car sales tax deduction is limited to the first $49,500 of vehicle’s price. There is no limit to the number of vehicles that you can buy. 

This tax break begins to phase out for single filers with modified AGI of $135,000 and for couples with modified AGI of $260,000.