If you bought a new car, light truck, motor home or motorcycle in 2009 you may qualify for a special tax deduction for the sales and excise tax on that purchase. Your vehicle must not weigh more than 8,500 pounds, except for motor homes, on which there’s no weight limit, and you must have bought it between February 16, 2009 and January 1, 2010. The taxes paid on up to $49,500 of each qualifying vehicle are deductible.

Other points of note:

• If you live in a state with no sales tax you may be eligible to deduct other fees charged by the state.
• Even if you don’t itemize, you can add this amount to your standard deduction by completing Schedule L.
• Taxpayers with a modified adjusted gross income below $125,000 ($250,000 for joint filers) are eligible for the entire deduction, but there’s a phase out between $125,000 and $135,000 ($250,000 and $260,000 for joint filers).

Questions about this deduction? Call us for an appointment: (904) 396-5400.

Filed under: Tax by Lynn Barwell