Sales Tax on New Vehicle Purchases

The American Recovery and Reinvestment Act provides for new incentives for the purchase of new cars in 2009.  This applies to vehicles purchases after February 16, 2009 and before January 1, 2010.  Taxpayers who qualify may deduct the sales tax (state, local, and excise) on the purchase of new cars, light trucks, motor homes, and motorcycles.  You may claim the deduction for as many vehicles as you would like – there is no limit.  The deduction per vehicle, however, is limited to the tax on a purchase price of up to $49,500 and does phase out for taxpayers at higher income levels.  The nice thing about this sales tax deduction is that it is available regardless of whether or not a taxpayer itemizes deductions on Schedule A. 

 

Jessica Chisholm, CPA
Seattle/Bellevue Tax Accountants
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Seattle CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. Since 2002, he has owned his own small business, Huddleston Tax CPAs. He is a graduate of Washington State University and the University of Washington School of Law.

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Huddleston Tax CPAs of Seattle & Bellevue
Certified Public Accountants Focused on Small Business

(800) 376-1785
40 Lake Bellevue Suite 100, Bellevue, WA 98005

Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching, Quickbooks consulting, bookkeeping, payroll and business valuation services for small business. We serve Seattle, Bellevue, Redmond, Tacoma, Everett, Kent, Kirkland, Bothell, Lynnwood, Mill Creek, Shoreline, Kenmore, Lake Forest Park, Mountlake Terrace, Renton, Tukwila, Federal Way, Burien, Seatac, Mercer Island, West Seattle, Auburn, Snohomish and Mukilteo. We have a few meeting locations. Call to meet John Huddleston, J.D., LL.M., CPA, Tawni Berg, CPA, Jennifer Zhou, CPA, Jessica Chisholm, CPA or Chuck McClure, CPA. Member WSCPA.