Auto Sales Tax Deduction - National Automotive Dealers Association

EXPIRES 12/31/2009

(This information is from NADA not Fisher Auto Inc., and is not a substitute for tax advice - Consult your tax advisor for complete details on all tax issues)

On February 17, President Obama signed the American Recovery and Reinvestment Act 0f 2009, which includes auto ownership tax assistance for many new-car buyers.

What taxes are deductable?

• State Motor Vehicle Sales
• Local Motor Vehicle Sales
• Motor Vehicle Excise Taxes

What Customers Qualify for the Deduction?

• Individual customers with modified adjusted gross income of less than $125.000 or joint-filers making less than $250,000 a year in 2009 would qualify for the deduction.
• Deductable as an "above the line" (for itemizers and non-itemizers) deduction on federal tax return.

Effective Date

• New vehicle purchases shall apply to purchases on or after the date of enactment (February 17, 2009) until December 31, 2009.

What new vehicles qualify for the deduction?

• Any new vehicle not more than 8,500 pounds gross vehicle weight
• New vehicles of any model year - when the original use commences with the taxpayer.
• Any vehicle sold for under $49,500 qualifies for the full deduction.  Consumers may deduct sales taxes on the first $49,500 of any vehicle sold above this price.

This is a generalized summary.

• Tax savings will depend on one's individual tax rate.  For more specific information on eligible customers, taxes and applicability, customers are encouraged to consult with an accountant or tax professional.