Do you live in a state without a sales tax? You can still benefit from the new deduction for sales and excise taxes attributable up to $49,500 of a new vehicle’s cost.
The IRS now says you can deduct other fees or taxes imposed by a state or local government on a vehicle’s sales price or as a per-unit fee. (IRS News Release IR-2009-60)
Reminder: The deduction begins to phase out if your modified adjusted gross income (MAGI) exceeds $125,000, or $250,000 for joint filers.
- Small Business Tax Deduction Strategies No matches