As part of the recent stimulus bill you can now deduct the taxes that you pay on a new car purchase. If you have been on the fence about purchasing a Certified Pre-Owned Mercedes versus a new one this may help make that decision. Since most of our models will max out the $49,500 of purchase price that can be used for this deduction, residents of Gwinnett County (6% sales tax) can expect a maximum deduction of $2,970. This deduction is not avaliable for leased vehicles. If you’re looking at purchasing a new Mercedes here is an outline of this deduction.
What taxes are deductible?
- State Motor Vehicle Sales
- Local Motor Vehicle Sales
- Motor Vehicle Excise Taxes
What Customers qualify for the deduction?
- Individual customers with modified adjusted gross income of less than $125,000 or joint filers making less than $250,000 a year in 2009 would qualify for the deduction.
- Deductible as in “above the line” (for itemizers and non-itemizers) deduction on federal tax return.
- New vehicle purchases shall apply to purchase on or after the date of enactment (February 17, 2009) until December 31, 2009.
What New Vehicles Qualify for the Deduction?
- Any new vehicle UNDER 8,500 gross vehicle weight.
- New vehicles of any model year – when the original use commences with the taxpayer.
- Any vehicle sold for under $49,500 qualifies for the FULL deduction. Consumers may deduct sales taxes on the first $49,500 of any vehicle sold above this price.
This is a Generalized Summary. Tax savings will depend on one’s individual tax rate. For more specific information on eligible customers, taxes, and applicability, dealers are encouraged to consult with an accountant or tax professional.