Scott Gottlieb, CPA


105 Maxess Road, Suite N116
Melville, New York 11747

Office: 631-574-4484 or 631-253-CPA2
scott@gottliebcpa.com

 
 
631-574-4484 phone
631-253-0909
facsimile
American Institute of CPA'S
Member of BNI
Certified Quickbooks Pro Advisor
Registered In NY

certified quickbooks proadvisor
  For My Clients
  City/State/Federal Tax Forms & Revenue Links
  IRS Information For All
  NYC Business Forms
  State Business Forms
  Federal Business Forms
  Calculators
  Quickbook Updates
  Home
  Links of Interest
  U.S. Tax Code
  Tax & Government Links
  Tax Humor & History
  Contact Us
  Weather
  Home
 
  Articles & News
  Current Article
  Archived Tax Articles
  American Recovery
Reinvestment Act 2009
  Archives Interest Sites
 

Balance Budget Act 1997

 

Never Underestimate the Value of A CPA


scott@gottliebcpa.com

Pet Adoption

 

 

 

 

 

 

 

 

 

NEWS BYTES
October 2009

Special Sales Tax Deduction for Car Purchases Available through End of 2009

IR-2009-88, Oct. 7, 2009

Vehicle Tax Deduction YouTube Video


WASHINGTON — With 2010 models arriving in dealer showrooms, the Internal Revenue Service reminds taxpayers that purchasing a new car, light truck, motor home or motorcycle could qualify them for a special deduction for the state and local sales and excise taxes on their 2009 tax returns.
Purchases made before Jan. 1, 2010, will qualify for this deduction under the American Recovery & Reinvestment Act of 2009 (ARRA).

The deduction is limited to the sales and excise taxes and similar fees paid on up to $49,500 of the purchase price of a new 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.

Taxpayers who make qualifying new vehicle purchases this year can estimate the deduction with the help of Worksheet 10 in IRS Publication 919, How Do I Adjust My Withholding? Lines 10a to 10k of the worksheet show how to take into account purchases above the $49,500 limit, as well as the reduced deductions for taxpayers at higher income levels.

The special deduction is available regardless of whether taxpayers itemize deductions on their returns. Taxpayers who do not itemize will add this additional amount to the standard deduction on their 2009 tax return.

For those that have questions about the deduction for sales tax and other fees, these questions and answers might help. A videovideo on the IRS Youtube.com channel and audio podcasts in English and Spanish are also available to help taxpayers take full advantage of the deduction.

 

Overview of the Sales Tax Deduction for Vehicle Purchases
IR-2009-60, Special Tax Break on New Car Purchases Available in States With No Sales Tax





 

 

 

 

1997-2009 Scott Gottlieb, CPA. All Rights Reserved.

Disclaimer/Use of Site

The materials on this Web site are for informational purposes only and are not intended and should not be construed as accounting advice. This information is not intended to create, and receipt of it does not constitute, a CPA-Client relationship. You should not act upon this information without seeking counsel from a Certified Public Accountant