Corrections and Clarifications
Uncle Sam Giveth and Uncle Sam Taketh Away
As reported in the last What’s New, the federal economic stimulus package provides a tax break for new vehicle buyers. While the original proposal allowed for deducting interest on your car loan, the Auto Assistance Ownership amendment was scaled back and that deduction is no longer allowed. You are still allowed to deduct state, local, and excise taxes paid on up to $49,500 of the purchase price of a qualified new vehicle. The vehicle must be purchased on or after February 17, 2009 and before January 1, 2010. Some income restrictions apply, so see your tax advisor for more details.
