Today's Tax Tip

Sales Tax On Purchase Of New Cars Is Now Deductable

SAN FRANCISCO (MarketWatch) -- If nothing else, the American Recovery and Reinvestment Act, affectionately known as the stimulus bill, will stimulate plenty of visits to tax professionals' offices.

Case in point: The law offers a new break for buying a new car. But, as with most things tax, it's not quite as simple as it sounds.

Specifically, taxpayers who buy a brand-new car between Feb. 17 and Dec. 31 this year can deduct the sales tax. This tax break is available whether taxpayers itemize or take the standard deduction. Taxpayers can deduct the sales tax on up to $49,500 of a car's purchase price.

Read Article Here:

http://www.marketwatch.com/news/story/The-new-deduction-buying-a/story.aspx?guid=%7BA2CB9406%2D0AAF%2D4C0C%2DB1FC%2DD353F03A1DA0%7D