Ask the taxgirl: Buying More Than One New Car

Taxpayer asks:

I bought a new Honda Accord in the spring which I know will qualify for the new car tax break. My wife wants to buy another car by the end of the year – our dealer is having a close-out. I told her I’d do it if we can still get the tax break. So am I making her happy this year?

Taxgirl says:

Yes! Go put a smile on her face. There is no limit on the number of cars which qualify for the new car sales tax deduction, so long as they are considered “qualified vehicles.”

A “qualified vehicle” is a passenger automobile, light truck or motorcycle which has a gross vehicle weight rating of 8,500 pounds or less (motor home also qualify). You can deduct the sales tax paid on up to $49,500 of the purchase price. And it has to be a new vehicle (not just new to you).

Phase outs and other restrictions apply, so read the fine print.

Enjoy your new car!

Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.

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3 thoughts on “Ask the taxgirl: Buying More Than One New Car

  1. Did I have to pay the sales tax on the car in 2009? In Missouri, you do not pay the taxes at the dealership at the time of sale. You pay them within 30 days when you go to register and title the vehicle. What if I bought the car at the end of December 2009, but I don’t pay the taxes until January 2010?

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