The IRS just announced that new car buyers can deduct the state and local sales and excise taxes on their 2009 tax returns next year, according to our furry little tax adviser.
For those thinking about buying a new car this year, this deduction may give them a little more drive to make their purchase this year,” said IRS Commissioner Doug Shulman. “This deduction enables taxpayers to buy now and get cash back later on their tax returns.”
The vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010, and the deduction cannot be taken on your 2008 returns. For more information about how to qualify for this deduction, click here.