NEW CAR DEDUCTION

Purchasers of new cars bought after February 17, 2009 are allowed an above-the-line deduction for sales taxes paid on the purchase. The limits are 1.) The taxes can't exceed the portion of the tax attributable to the first $49,500 of the purchase price and 2.) The deduction will be phased out for individuals with adjusted gross income exceeding $125,000 ($250,000 for joint returns). Qualified purchases are cars, SUVS, light trucks or motorcycles that weigh no more than 8,500 pounds. Motor homes also qualify.