Car buyers: In an effort to get Americans shopping again, legislators created a deduction equal to the amount of sales tax paid on a new car purchased between Feb. 17 (the date of the law's enactment) and the end of the year.
The deduction will be less helpful for those who live in states with no income tax, because they usually are already writing off their sales taxes. But in California, where more people write off state income taxes, the deduction could be a boon. You will be able to claim this deduction even if you don't itemize. But the deduction is only for 2009, and it's income-tested, so singles earning more than $125,000 and married couples earning more than $250,000 start to lose the deduction until they're completely phased out at single income of $135,000 and joint income of more than $260,000.
Finally, it is available only for the tax paid on up to $49,500 of the car's price. So if you bought a $60,000 vehicle , your write-off would be limited to about $4,400 (assuming a 9% sales tax) Please consult your personal accountant for specific details.
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