Liberty Tax Service Reminds Taxpayers There are Now Tax Breaks for New Car Purchases in Every State
(Virginia Beach, VA) Car shoppers can reap the benefits of deducting some eligible fees paid for a new car in 2009, even if they purchase the car in a state with no sales tax, according to Liberty Tax Service.
“Best of all, taxpayers can take advantage of this tax break in 2009 regardless of whether they itemize deductions or not. The deductible fees can be added to the standard deduction,” said John Hewitt, CEO and Founder of Liberty Tax Service.
The American Recovery and Reinvestment Act of 2009 activated a new deduction for state or local sales or excise taxes paid on a new car. Those taxpayers living in the states without a state sales tax, such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon were originally excluded from a tax break.
Now those purchasing a new car in those states without a sales tax will have a break too by deducting other state fees or taxes that are based on the vehicle’s sales price, or as a per unit fee.
Eligible Dates: This offer is only good for vehicles after Feb. 16, 2009, and before Jan. 1, 2010.
Limited Price Deduction: The deduction is limited to the fees or taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle.
Phase-out Income Qualifying Levels: Between $125,000 and $135,000 for individual filers, and between $250,000 and $260,000 for joint filers.
About Liberty Tax Service
Liberty Tax Service (www.libertytax.com) is the fastest growing retail tax preparation company in the industry’s history, with over 3,100 offices in the United States and Canada. The company plans to open up to 500 new offices in January 2010. Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared over 7,000,000 individual income tax returns. With 41 years of tax industry experience, Hewitt stands as the most experienced CEO in the tax preparation business, having also founded Jackson Hewitt Tax Service (NYSE:JTX).
Liberty Tax Service (www.libertytax.com) provides computerized income tax preparation, electronic filing, refund loans, and online filing through eSmart Tax at www.esmarttax.com. Each office offers customers audit assistance, a money back guarantee, and free tax return checking. The Liberty Tax Service franchise opportunity has climbed to #3 on the latest Entrepreneur “Franchise 500.”