Buy a new vehicle by the end of the year at any Earnhardt dealership and reduce your taxable income!

Did you know that you can deduct state and local motor vehicle sales taxes, plus excise taxes on all new vehicle purchases made from February 16, 2009 until December 31, 2009?

With the passage of the American Recovery and Reinvestment Act of 2009 (ARRA) auto buyers are able to deduct state and local motor vehicle sales taxes, plus excise taxes on all new vehicle purchases. This deduction is applicable to new foreign or domestic cars less than $49,500 and weighing no more than 8,500 pounds, which means that sport-utility vehicles and light trucks qualify. It would be an “above the line” deduction, meaning even tax filers who don’t itemize deductions could still get the benefit.

Example: On an average purchase of $28,000, buyers could reduce their taxable income by as much as $2,500 with total tax rates in some cities as much as 8.95%.

Full benefit is available to individuals with adjusted gross income (AGI) less than $125,000 ($250,000 for married couples filing jointly). Individuals with AGI between $125,000 and $135,000 ($250,000 and $260,000 for married couples filing jointly) are allowed a partial benefit.

For more information, contact any Earnhardt Dealership.