New Car Sales Tax Deduction for 2012
This new car sales tax deduction did officially expire back in December 31 of 2009, but if you’re filing an amended tax return then this information may be of some use to you yet. For whatever reason the rumor persists that you can still get this for the 2010 and 2011 tax years but it simply isn’t so!
The new cars sales tax deduction was initiated as part of the American Recovery and Reinvestment Act to boost the economy and act as a buffer on the expenses of the American people. This tax deduction is not the section 179 “hummer tax break” that small businesses still utilized. The new car sales tax deduction included light trucks, motorcycles and motor homes. If a taxpayer had purchased one of these qualifying vehicles after February 17 of 2009 and before December 31st of the same year, then they would have qualified for the new car tax deduction.
This was a program that is heavily dependent on the tax laws for each different state, and it will be necessary to research those laws for yourself as you need to.
There were some other requirements as well, such as needing to have made less than $125,000 for the year in which you want to file. For joint filers you will have had to report less than $250,000.
Another stipulation was that you cannot have spent more than $49,500 on the vehicle in question. Though it should be obvious that a used car does not qualify to claim the new car sales tax deduction, a new car that you leased does not count either.
Strangely enough, the deduction did in fact apply to multiple cars purchased, if they were of a qualifying type of course, and speaking of strange it doesn’t matter whether you itemize or take the standard deduction, you can still take the new car sales tax deduction regardless.
If you’d like to know more about this popular topic then TurboTax Online will be a worthwhile visit. They have free information regarding this subject and there are many real live testimonials of taxpayers who have direct familiarity with the new car deduction.