The recently enacted Federal Stimulus Bill will give tax incentives for the purchase of new vehicles. These tax credits can still be combined with the previously existing $1,300 tax deduction for any 2009 Jetta TDI or Sportwagen TDI. Here's how it works:
Effective 2/17/09-12/31/09
Deductible taxes: State or local motor vehicle sales (use tax) or excise taxes imposed on the purchase of a NEW motor vehicle.
Who qualifies? Individuals with modified adjusted gross income of less than $125,000 or joint-filers making less than $250,000 in 2009. The deduction is allowable for the alternative minimum tax.
What New vehicles qualify? Any new vehicle under 8,500 lbs GVW of any model year. Only the first $49,500 qualifies for the full deduction.
For example:
A person purchasing a 2009 VW Touareg for $45,000 would pay $3,474 in taxes if they lived in the city limits of Denver. Hypothetically if they were in a 30% tax bracket they would save $1042 in federal taxes and additionally more on their Colorado state income taxes.
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