Special Tax Break Available for New Vehicle Purchases this year.

The IRS announced today that taxpayers who buy a new passenger vehicle this year may be entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax returns. “For those thinking about buying a new car this year, this deduction may give them a little more drive to make their purchase year,” said IRS Commissioner Doug Shulman. “This deduction enables taxpayers to buy now and get cash back later on their tax returns.”

Tax Tip for Business Owners

The 2009 Tax Stimulus Package provides significant tax benefits to business owners. If you purchase an eligible vehicle, the available benefits include immediate eligibility for an expense deduction and an additional bonus of accelerated depreciation. According to KPMG, a business that purchases a “qualifying” vehicle in 2009 for $50,000 may deduct a total of $40,000. This would include the Section 179 deduction, bonus depreciation deduction and the first year MACRS deduction.

Additional information regarding the bonus depreciation and to calculate your bonus depreciation, visit www.depreciationbonus.org. This is a very exciting opportunity for individuals and businesses. Watson Quality Ford and Watson Quality Hyundai are the Home team. We have hundreds of qualifying vehicles to choose from. Our Commercial Sales team is ready to assist you with your purchase. Please communicate with your CPA or Tax Advisor for complete deductions and eligibility limitations.