December 15, 2011 Which Cars Count Towards the New Vehicle Tax Credit of 2011
This deduction is available whether or not a taxpayer itemizes deductions on Schedule A.
Will my car count towards the new vehicle tax credit of 2011?
The limit for this deduction is $49,500 for the taxes and fees you have paid for the purchase price of an eligible vehicle. The deduction is reduced for joint filers with modified adjusted gross incomes (MAGI) between $250,000 and $260,000 and other taxpayers with MAGI between $125,000 and $135,000. Taxpayers with higher incomes do not qualify for this additional deduction.
Used cars are not eligible for this deduction, new vehicles only (you must be the first owner of the vehicle). Leased vehicles and rentals do not qualify for this tax deduction. The law specifies that the deduction applies to the purchase of qualified new vehicles. A lease is not a purchase for the purpose of this deduction.
The new vehicle tax credit of 2011.
I advise you to make your purchase of a new car or vehicle early in the year. You may not know this, but the end of the first calendar quarter is the only quarter in which you can claim the full new car tax credit, applied to the first 60,000 vehicles sold. Sequential quarters drop the tax credit down to 50% followed by 25%.
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