New Tax Deductions for Bartlesville New Car Buyers

The economy is currently not in the best of shape. We here in Bartlesville, Oklahoma are feeling the pinch of difficult economic times just as people across the nation are. The stock market has spiraled downward at unprecedented levels, financial institutions have lined up with their hands out at the government’s door, unemployment is on a steady increase and people who are still fairly financially stable are sitting on their funds, wary of making purchases.

Is it the Attitude or the Confidence?

The problem with this is that the exchange of money for goods is what keeps the economy functioning. When we have tough economic times like these the lack of public confidence in the economy, brought on by the news of the markets and such, is often just as detrimental as the events that caused the lack of confidence. So what happens is consumers end up unwittingly compounding the problem. The answer to this would seem to be economic stimulus at the consumer level.

Economic Relief at Your Oklahoma Car Dealership

Now, many here in Bartlesville and across the nation have been less than enthusiastic about what is considered corporate bailouts with large sums of government, and thereby public, money being given to corporations. Whether this is a beneficial move or not I will leave up to others to discuss. I’m not an economist. But what I do know is that people are currently apprehensive about making major purchases and this is never a good thing.

This past week though, the government made a move that many might be interested in. In an effort to get the automotive markets functioning at better levels President Obama signed “The American American Recovery and Reinvestment Act of 2009” into law on February 17, 2009. This law includes a brand new tax deduction applicable towards any state and local sales taxes and excise taxes paid by the consumer during the purchase of a motor vehicle.

Buy a Car Truck SUV or Van While the Buying is Good

This should end up saving a lot of people a significant amount of money on automobile purchases in the coming year. I recently wrote a post pointing out a number of reasons why right now was actually a great time for those here in Bartlesville interested in purchasing a new vehicle to buy a new car or truck and this is great another reason to add to that list.

Here is a fact sheet for those interested in a little more specifics on this move by the government to help restore consumer confidence in their ability to purchase a new vehicle.

FACT SHEET: AUTO SALES AND EXCISE TAX DEDUCTION

• Provides consumers a new tax deduction on their 2009 Federal income taxes for “qualified motor vehicle taxes.”
• Qualified motor vehicle taxes include any State or local sales or excise tax imposed on the purchase of a qualified motor vehicle.
• Qualified motor vehicles include passenger automobiles or light trucks with a weight rating of not more than 8,500 pounds.
• Applies to NEW vehicles only.
• Deduction allowed for non-itemizers.
• Limitation on Vehicle Price: limited to the tax on up to $49,500 of the purchase price of a qualified motor vehicle.
• Income Limitation: Phased out for taxpayers with modified adjusted gross income between $125,000 and $135,000 ($250,000 and $260,000 in the case of a joint return).
• Effective Date: Purchases on or after February 17, 2009, and before January 1, 2010.

Consumers with questions related to their particular tax situation should be advised to consult with a financial adviser.

If You Live in Bartlesville or Tulsa, Come See Me

If you are in Barltesville, Tulsa or the surrounding area and are interested in taking advantage of the buyer’s market presently available to auto consumers feel free to contact me for a quick quote on any vehicle you are considering. I’m also always available to answer your questions, whatever they may be, through the Ask Brad form. Or you can just search the inventory for new or used Ford Lincoln Mercury or Toyota cars or Trucks at my Barltesville, Oklahoma lot.

Check back for more information, car reviews, insider buying tips and auto news in my daily blog posts, or subscribe to the RSS feed to have the posts delivered directly to your e-mail inbox.

Until tomorrow, have a great day!

For more information please contact Brad Doenges of Doenges Ford Lincoln Mercury Toyota in Bartlesville Oklahoma at (918) 333-0900.

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