Several facts about New Vehicle Sales and Excise Tax Deduction

For 2009, there are special tax deductions for taxpayers who purchase new motor vehicles. The sales and excise tax may qualify for deduction for qualified taxpayers. For taxpayers in states where sales tax is not applied may be eligible to deduct other fees and/or taxes. Listed below are several facts about new vehicle sales and excise tax deduction-
1. Qualified vehicles generally include new car, motorcycles, light trucks that weigh $8,500 pounds or less and motor homes (not subject to weight limit)

2. Qualifying vehicles up to $49,500 of the purchase price may qualify to deduct the state and local sales and excise taxes on their 2009 returns.
3. Purchase of the qualified vehicle must be after Feb 16, 2009 and before Jan 1, 2010
4. Taxpayers who purchase new motor vehicles in states that do not have state sales taxes may be entitled to deduct other fees or taxes assessed on the purchase of those vehicles. Fees or taxes that qualify must be based on the vehicles’ sales price or as a per unit fee. These states include Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon.
5. This deduction applies to taxpayers who takes the itemized and standard deductions
6. The amount of the deduction is phased out for taxpayers after a certain income threshold




source: http://www.irs.gov/newsroom/article/0,,id=213200,00.html