subject: Special tax deductibility of state and local sales and excise [print this page] Special tax deductibility of state and local sales and excise
For people who bought the 2010 cars and vehicles, and with tax season just around the corner, you should be aware that the purchase of a new (not used) cars, trucks, vans and motorcycles, which had a gross weight rating to 8,500 pounds and revenue of the state to pay local taxes and are eligible for special need for a special discount to fees in 2009.
Explanation of how this network, thisDeductions, regardless of whether the measures contain details of other deductions on tax returns.
Purchases prior to January 1, 2010, may qualify for this discount, as part of the recovery of the United States and Reinvestment Act of 2009. A qualified motor vehicle includes a car, truck or motorcycle, started the original use that with the buyer, and has a total weight of 8,500 kg or less. Purchases must be made after February 16, 2009 andbefore 1 January 2010.
This special sales and excise and similar taxes that a vehicle is limited to the purchase price of $ 49,500 for a new vehicle limited to the amount paid. The deduction is for joint filers with modified gross income (MAGI) of $ 250,000 to 260,000 $ and other taxpayers with MAGI must be reduced from $ 125,000 to $ 135,000. Unfortunately, if the rent is higher than that specified above, then are not available.
There is some good news,Deduction is available if you itemize deductions on your tax return. If you add any list, that additional amount to the standard deduction in the income statement for the year 2009. Also, take advantage of this special provision in the franchise, you must file Form 1040 Form or 1040A. E 'for the people who form 1040ez use.
If you regularly use, since 1040ez [fiscal control Tip], the use and presentation card 1040 or Form 1040AInstead of form 1040ez take advantage of this deduction.
