Tax incentives to buy a new car

1 Purchase a new car deductions
In order to stimulate the economy, earlier this year, the IRS announced a new tax deduction for taxpayers who buy a car in 2009. The new deduction allows "pay state and local sales and excise taxes on up to $ 49,500 of the purchase price of qualified new car, light truck, RV or motorcycle." You infer, therefore, if you pay $ 2,500 in taxes when you buy the new car, you can use this money deducted from taxable income in the nextSeason. Just be sure to keep all sales materials for you to provide proof that you paid the fee. In addition, there is no word yet if the deduction is extended or not. So if you are going to buy a car then you might want to do it before the end of 2009.

2 Hybrid Tax Credits
There are many tax advantages that are still available for purchase for those of you with the hope of a hybrid or alternative fuel vehicle. The highest of these is a credit of $ 4,000 for taxpayers whoThe purchase of a Honda Civic GX, which runs entirely on compressed natural gas. In terms of car sales new car tax deduction contrast, the hybrid incentive tax credits, which means it reduces the dollars of tax per dollar. To view a list of all eligible vehicles, check out FuelEconomy.gov.

Car Donation In California

3 Electric Vehicles
Although a little 'less attractive then a hybrid vehicle, electric cars with the best set of tax incentives to come. As part of the Obama administration, American Recoveryand Reinvestment Act of 2009, new credit was created to encourage taxpayers to purchase electric vehicles. The credit is up to 10% of the purchase price, and depending on how the costs of vehicles, it could be a fairly significant tax credit. For those of you hesitating, could, then in 2010 plug-in electric vehicles are expected on the market for a loan and are similar.

Tax incentives to buy a new car

4 Vehicle Donation
If you want to buy a new vehicle, then you might wantDonate old car. In addition to knowing that supporting a good cause, you can also take advantage of tax benefits. There are several charities that reputation is still running (sometimes even running) will be held vehicles. To ensure that the charity has a non-profit with the IRS, how you can include the donation as a gift to your next tax return.

5 Conversion
If you are a mechanic, or just practical, with the car, thenYou may be able to take advantage of tax credits the conversion. Another part of the Recovery and Reinvestment Act of 2009 gives taxpayers who buy a kit to convert your car to an electric vehicle, a tax credit of 10% up to $ 4,000. In addition, after the IRS taxpayers claim this credit, even if they have already claimed a credit hybrid purchase.

Tax incentives to buy a new car