I have a question about tax credit for buying a new car. Could you clarify what date the tax credit is available when you buy a new car?
Here is the answer from an Internal Revenue Service spokes-man: “The American Recovery and Reinvestment Act of 2009 provides a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles through 2009. “Purchases before Feb. 17 are not eligible for this deduction. “The deduction is available regardless of whether a taxpayer itemizes deductions on Schedule A. Deductions are limited to the tax on $49,500 of the purchase price of an eligible motor vehicle. “The deduction is phased out for joint filers with modified adjusted gross income between $250,000 and $260,000 and other taxpayers with modified adjusted gross incomes between $125,000 and $135,000.”