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 that 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).
Phaseouts and other restrictions apply, so read the fine print.
Enjoy your new car!
Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
If you have a question, here’s how to Ask The Taxgirl.
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?