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is there a stipulation regarding a tax credit if you buy a new car this year?
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Not quite.
http://www.savingtoinvest.com/2009/02/car-buyer-tax-breaks-in-obama-economic.html
It's not a tax credit. It's a tax deduction. That means it lowers your overall tax liability. It means that this amount of your income isn't taxable. It is not a credit that lets you apply it directly agains the income tax you own.
The tax deduction is equal to the amount you pay on sales and excise tax when you purchase a NEW car between the time the bill was signed and Dec 31, 2009. Cars purchased before that, as well as purchases of used cars, are not eligable.
http://www.savingtoinvest.com/2009/02/car-buyer-tax-breaks-in-obama-economic.html
It's not a tax credit. It's a tax deduction. That means it lowers your overall tax liability. It means that this amount of your income isn't taxable. It is not a credit that lets you apply it directly agains the income tax you own.
The tax deduction is equal to the amount you pay on sales and excise tax when you purchase a NEW car between the time the bill was signed and Dec 31, 2009. Cars purchased before that, as well as purchases of used cars, are not eligable.
Beginning Tuesday, February 17th, if you buy a new car before the end of the year, you will get a tax deduction when you file your 2009 taxes.
There are a few stipulations you'll have to keep in mind.
If the customer would buy a vehicle, then they pay sales tax on that, and that sales tax will be deductible when they file their tax return. So what it's going to do is essentially lower the transaction cost of buying a new vehicle
There are a few stipulations you'll have to keep in mind.
If the customer would buy a vehicle, then they pay sales tax on that, and that sales tax will be deductible when they file their tax return. So what it's going to do is essentially lower the transaction cost of buying a new vehicle
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