Concord Toyota
1090 Concord Avenue Concord, CA 94520SALES ONLY: 866-981-2451
- SERVICE ONLY: 888-529-9568
- PARTS ONLY: 888-529-9558
Did you know that there is an incentive for a new vehicle purchase in the form of a tax break for you? The simple details of the incentive are made clear below.
The Federal government's American Recovery and Reinvestment Act permits taxpayers to take a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles. The deduction is available on new vehicles purchased from Feb. 17, 2009 through Dec. 31, 2009. In states that don't have a sales tax, the law provides a deduction for other taxes and fees paid.
The goal of this incentive is to provide a stimulus to new car buyers to help boost the automotive industry. This benefit is in the form of a tax deduction for state sales tax paid on a new vehicle purchase.
The Federal government's American Recovery and Reinvestment Act permits taxpayers to take a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles. The deduction is available on new vehicles purchased from Feb. 17, 2009 through Dec. 31, 2009. In states that don't have a sales tax, the law provides a deduction for other taxes and fees paid.
The goal of this incentive is to provide a stimulus to new car buyers to help boost the automotive industry. This benefit is in the form of a tax deduction for state sales tax paid on a new vehicle purchase.
The Highlights:
Frequently Asked Questions:
Q. How does the 2009 new car purchase stimulus incentive work?
A. The state charges an excise tax or sales tax on the new vehicle purchase price. The exact amount of these taxes varies by state. For 2009, the sales tax or excise tax, charged by the state, will now be tax deductible.
Q. What is the origin of this new car sales tax deduction?
A. The American Recovery and Reinvestment Act of 2009 provides a deduction for state and local sales and excise taxes paid on the purchase of qualified new vehicles through December 31, 2009.
A. No, only state and local sales taxes paid on up to $49,500 of the purchase price of a qualifying vehicle are deductible.
Q. Does the purchase of a used car qualify for this deduction?
A. No. In order to take the deduction, you must be the first owner of the vehicle.
Q. When can the vehicle be purchased to qualify for this deduction?
A. This deduction applies to vehicles purchased after Feb. 16, 2009 and before Jan. 1, 2010.
Q. Do I have to itemize in order to take this deduction?
A. No. Anyone who qualifies can take this deduction. You will claim this deduction when filing your 2009 federal income tax return in 2010. There will be a line on the 2009 tax forms, just follow the instructions.
Q. What about those new 2008 models still sitting on the lot - can I claim the deduction if I purchase one of last year's models?
A. Yes, you can take the deduction as long as you are the vehicle's first owner.
Q. Are there any restrictions on who can take the deduction?
A. Yes. This deduction is phased out for higher income taxpayers. Single taxpayers whose modified adjusted gross income is less than $125,000 and married taxpayers whose modified adjusted gross income is less than $250,000 will receive the full deduction.
Q. At what income does the deduction fully phase out?
A. The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.
Q. If I purchased a qualified vehicle, may I amend my 2008 tax return to claim the deduction now?
A. No. You can only claim this deduction on your 2009 tax return.
Q. What if my state doesn't have a sales tax?
A. Purchases made in states without a sales tax - such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon - can also qualify for the deduction. Taxpayers in states without a sales tax are entitled to deduct other qualifying fees or taxes imposed by the state or local government. The fees or taxes that qualify must be assessed on the purchase of the vehicle and must be based on the vehicle's sales price or as a per unit fee.
Q. Can I take the deduction for a second or third vehicle I purchase?
A. Yes. There is no limit on the number of cars for which you can claim the deduction, provided each car is a qualified vehicle under the law.
Q. Can I take this deduction for any qualified vehicle - even those made by foreign car companies?
A. Yes. As long as it is a new car and otherwise qualifies, you may take the deduction.
Remember: This incentive expires Thursday, 12/31/2009! Hurry in before time runs out!
With all the great manufacturer incentives and the potential Federal tax deduction on a new car purchase, this really IS a great time to buy!
Visit us today or check out our new vehicle inventory.
- State and local sales taxes paid on up to $49,500 of the purchase price of qualifying vehicles are deductible.
- Qualified motor vehicles generally include new (not used) cars and light trucks.
- Purchases must occur after Feb. 16, 2009, and before Jan. 1, 2010.
- This deduction can be taken regardless of whether or not you itemize other deductions on your tax return.
- Taxpayers will claim this deduction when filing their 2009 federal income tax return next year.
- The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.
Frequently Asked Questions:
Q. How does the 2009 new car purchase stimulus incentive work?
A. The state charges an excise tax or sales tax on the new vehicle purchase price. The exact amount of these taxes varies by state. For 2009, the sales tax or excise tax, charged by the state, will now be tax deductible.
- Sum it up: You can subtract the sales tax from your taxable income. For the exact amount of state sales or excise tax you will pay for your new vehicle, ask the dealership for specifics.
- Example: Suppose you purchase a new vehicle for $35,000. Assume the state sales tax on this new vehicle is $700 in the year 2009. You can subtract the $700 from your 2009 taxable income!
Q. What is the origin of this new car sales tax deduction?
A. The American Recovery and Reinvestment Act of 2009 provides a deduction for state and local sales and excise taxes paid on the purchase of qualified new vehicles through December 31, 2009.
Q. What are considered to be "qualified motor vehicles" for the purpose of this deduction?
A. A qualified motor vehicle is a passenger automobile, light truck or motorcycle which has a gross vehicle weight rating of 8,500 pounds or less. A motor home is also considered a qualified motor vehicle.
Q. If I purchase a really expensive car, can I deduct the entire amount of state and local sales taxes paid on the vehicle?A. A qualified motor vehicle is a passenger automobile, light truck or motorcycle which has a gross vehicle weight rating of 8,500 pounds or less. A motor home is also considered a qualified motor vehicle.
A. No, only state and local sales taxes paid on up to $49,500 of the purchase price of a qualifying vehicle are deductible.
Q. Does the purchase of a used car qualify for this deduction?
A. No. In order to take the deduction, you must be the first owner of the vehicle.
Q. When can the vehicle be purchased to qualify for this deduction?
A. This deduction applies to vehicles purchased after Feb. 16, 2009 and before Jan. 1, 2010.
Q. Do I have to itemize in order to take this deduction?
A. No. Anyone who qualifies can take this deduction. You will claim this deduction when filing your 2009 federal income tax return in 2010. There will be a line on the 2009 tax forms, just follow the instructions.
Q. What about those new 2008 models still sitting on the lot - can I claim the deduction if I purchase one of last year's models?
A. Yes, you can take the deduction as long as you are the vehicle's first owner.
Q. Are there any restrictions on who can take the deduction?
A. Yes. This deduction is phased out for higher income taxpayers. Single taxpayers whose modified adjusted gross income is less than $125,000 and married taxpayers whose modified adjusted gross income is less than $250,000 will receive the full deduction.
Q. At what income does the deduction fully phase out?
A. The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.
Q. If I purchased a qualified vehicle, may I amend my 2008 tax return to claim the deduction now?
A. No. You can only claim this deduction on your 2009 tax return.
Q. What if my state doesn't have a sales tax?
A. Purchases made in states without a sales tax - such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon - can also qualify for the deduction. Taxpayers in states without a sales tax are entitled to deduct other qualifying fees or taxes imposed by the state or local government. The fees or taxes that qualify must be assessed on the purchase of the vehicle and must be based on the vehicle's sales price or as a per unit fee.
Q. Can I take the deduction for a second or third vehicle I purchase?
A. Yes. There is no limit on the number of cars for which you can claim the deduction, provided each car is a qualified vehicle under the law.
Q. Can I take this deduction for any qualified vehicle - even those made by foreign car companies?
A. Yes. As long as it is a new car and otherwise qualifies, you may take the deduction.
Remember: This incentive expires Thursday, 12/31/2009! Hurry in before time runs out!
With all the great manufacturer incentives and the potential Federal tax deduction on a new car purchase, this really IS a great time to buy!
Visit us today or check out our new vehicle inventory.
Website by Dealer.com
Concord Toyota
1090 Concord Avenue
Concord,
CA
94520