Who says you can't get a break when you buy a new car?  The American Recovery and Reinvestment Act may give you the break you're looking for - a deduction for state and local sales and excise taxes or other fees you pay when you buy a new car, light truck, motor home or motorcycle through 2009.

 

The deduction is limited to the first $49,500 of the vehicle purchase price.  The amount of the deduction starts phasing out if you make more than $125,000, or $250,000 if you're filing a joint return.

 

So you can buy now and get cash back on your tax return next year.  Now doesn't that give you the drive to buy a new vehicle today?

 

For more information, please consult your tax consultant or visit http://www.irs.gov.