This is hardly incentive to go out and buy a new car, but if you were in the market for a new car anyway don't forget to take advantage of this new deduction.
"The stimulus plan allows a sales tax deduction when you nab a new auto, as long as it costs $49,500 or less and was purchased on or after February 17, 2009. Claim it even if you don't itemize, as long as your income is under $135,000 if you're single; $260,000 for couples."
How much this will save you depends on what tax bracket you are in and what the sales tax rate on new cars is in your area.
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IRS CIRCULAR 230 DISCLOSURE REQUIREMENT: IRS Circular 230 requires us to notify you that any tax advice contained in this communication is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding tax penalties that may be imposed by law.
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