Consumers in need of a new automobile will benefit from perks included in the American Recovery and Reinvestment Act of 2009. The stimulus plan was officially signed into action on February 17, 2009 and is an opportunity of tax benefits for consumers in targeted industries that are most affected by the recent economic downturn. The overall plan includes such benefits as tax cuts for workers, credits for first-time home buyers, and tax deductions for new car buyers who recently took on new auto loans.
Do You Qualify for a New Car Tax Deduction?
New car buyers purchasing qualified vehicles between February 17 through December 2009, will be entitled to claim a tax deduction as part of the purchase. Like all tax deductions, the overall benefit of this move will lower the filers’ taxable income for the year, thus lowering the amount of taxes they will have to pay. The sales tax on a purchase of a new vehicle (made in 2008 or 2009) valued at $49,500 can be claimed as a deduction on the 2008 tax returns. If taxes were already filed and a qualifying vehicle was purchased after the fact, consumers can claim the credit by filing an amended return.
The exact value of the stimulus plan on a new car purchasing tax break will differ from person to person based on their income, states sales tax, and the amount the car was purchased. The deduction would only apply to families earning less then $250,000 annually or singles earning less than $125,000.
New Stimulus Providing Great Incentives to Car Buyers
By combining the tax benefits of the stimulus plan with the discount incentives from dealers, consumers can get amazing deals on brand new vehicles. Industry insiders have stated that because of all the price benefits readily available, people who have previously only considered purchasing used vehicles, would actually pay less or the equivalent amount on a brand new car. So what are you waiting for? With spring just around the corner and all these wonderful dealership and tax incentives for you to benefit from, all that’s left for you to do is select a low interest auto loan and pick the car that’s right for you.
It is truly a buyers’ market, with so many unique options for consumers to save money, companies are really trying to stimulate consumers to buy in this tough economic time. If you recently got an amazing deal on a new car using any of the money-saving deals out there, share your shopping success story with the rest of the Go Banking Rates community.
That’s pretty cool – anyone bought a car?
Absolutely disappointing, I bought a car last year! They should give us some kind of tax benefit for buying in 2008 as well.
YES! I qualify!