Sales Tax Write-Off on Cars to End at Midnight December 31

As the clock ticks down to midnight on December 31, new car buyers have a limited incentive to finalize their purchases. A law allowing buyers to write off or deduct the sales tax on their purchase is set to expire, courtesy of the American Recovery and Reinvestment Act. This tax deduction has been a significant perk for car buyers, providing a write-off for new cars, light trucks, motor homes, and motorcycles, up to a maximum sale price of $49,500.

Key Takeaways:

• The sales tax write-off on cars is part of the federal economic stimulus package, the American Recovery and Reinvestment Act.
• The deduction allows buyers to write off or deduct the sales tax on their purchase, without having to itemize.
• The write-off is applicable for new cars, light trucks, motor homes, and motorcycles, up to a maximum sale price of $49,500.
• Car buyers who made their purchase after February 17 are eligible for the sales tax write-off through December 31.
• General sales managers at dealerships, such as Jim Wolff at Dayton Andrews Chrysler, Jeep, Dodge, are trying to inform customers about the impending deadline.
• Sujata Pillai, who is considering trading in her minivan for a new Honda Pilot, is also aware of the incentive to finalize her purchase before the deadline.

Statistics:

• The maximum sale price for eligible vehicles is $49,500.
• The sales tax write-off is applicable for new cars, light trucks, motor homes, and motorcycles.
• The deadline to finalize a purchase and be eligible for the sales tax write-off is December 31.
• Car buyers who made their purchase after February 17 are eligible for the write-off through December 31.

Sources:

• The Tampa Tribune, Wednesday, December 30, 2009, Section BUSINESS, Page 6
• Copyright 2009, The Tampa Tribune and may not be republished without permission. E-mail library@tampatrib.com