2nd Last Minute Move for 2009 – Motor Vehicle Purchase

December 7, 2009 | Subscribe to our RSS Feed

Unless Congress changes the law for 2010, a taxpayer won’t be able to deduct qualified motor vehicle taxes whether or not the taxpayer itemizes deductions. So if a taxpayer is intending to purchase a qualified motor vehicle soon, he should do it before year end. Provided the taxpayer meets certain conditions, it will assure him a deduction for any qualified motor vehicle taxes paid on the purchase whether or not he itemizes and whether or not Congress extends the optional itemized deduction for sales tax in lieu of income tax, which also is scheduled to expire this year.

Even if the optional sales tax deduction is extended as expected, the taxpayer would have to give up the itemized deduction for state and local income taxes to take advantage of it.

By purchasing this year, the taxpayer can both deduct sales tax on a qualifying motor vehicle purchase and get an itemized deduction for state and local income taxes.

Submitted by Sam Cohen
Questions?
sam.cohen@glassjacobson.com