Time to buy those new Vehicles…that have been stinking up lots for months!

One of the interesting tidbits revealed by President Obama during Monday’s press conference on the auto industry was the announcement of a tax deduction for sales tax on new vehicle purchases. Later in the day, the Internal Revenue Service made the money saving incentive official and fleshed out some of the finer points.

The new tax deduction will be made available for those filing their taxes individually with adjusted gross incomes less than $125,000 or for joint filers with adjusted gross incomes of less than $250,000. Any new automobile, truck, motor home or motorcycle with a purchase price of $49,500 or less will be eligible for the deduction.

In order to qualify, the vehicle must be purchased between February 16th, 2009 (making it mildly retroactive) and January 1st, 2010. The deduction can only be taken on your 2009 taxes, even if you have yet to file for 2008. Read the official press release after the break, and excuse me while I go take another look at that Challenger I’ve had my eye on…

[Source: IRS via Consumerist]Continue reading IRS makes deductible sales tax on new autos official

IRS makes deductible sales tax on new autos official originally appeared on Autoblog on Tue, 31 Mar 2009 12:34:00 EST. Please see our terms for use of feeds.