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?
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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