Do The New Federal Tax Credits Available at Sanderson Ford Lincoln Mercury Volvo Make a Difference?

Buy a New Car and Get a Tax Credit: President Obama and the IRS promote write-offs for new vehicle buys
The tax write-off passed by Congress in February and mentioned Monday by President Barack Obama is helping dealers close some new-car sales, says National Automobile Dealers Association spokesman David Hyatt.

Will these new Federal Tax Credits make a difference in whether or not you decide to buy a new car or truck in 2009? Please respond to this forum and give us your opinion.

The deduction covers the taxes paid on new cars, light trucks, motor homes and motorcycles up to $49,500. Individual taxpayers making up to $135,000 can get the full write off, while those who file jointly can have an income as high as $260,000 to claim at least part of the deduction.

President Barack Obama mentioned the initiative Monday during a discussion on the General Motors and Chrysler LLC bailouts.

“For those thinking about buying a new car this year, this deduction may give them a little more drive to make their purchase this year,” IRS Commissioner Doug Shulman said in a Monday statement. “This deduction enables taxpayers to buy now and get cash back later on their tax returns.”

The IRS says the vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010, to be eligible.

“I was talking to dealers yesterday about this,” Hyatt told Automotive News. “I asked a salesmen if he used the tax write-off as a talking point. He said it was a welcome thing that he’s used to close some deals,” Hyatt said.

The NADA was instrumental in getting the provision included in the stimulus packaged that passed in February. Hyatt said the NADA may seek to have the program extended by Dec. 31 if auto sales still have not recovered.

Written by Richard Truett

Automotive News | April 1, 2009

Sanderson Ford Lincoln Mercury Volvo of Glendale, AZ is using an online advertising campaign the inform and educate car buyers in the Phoenix Valley about this new tax credit incentive. The Sanderson campaign features animated display ads that appear on thousands of popular websites when Arizona consumers visit them. The ad examples shown in this article (above) land interested consumers on Sanderson's "Events" page which lists the following information:

2009 Auto Sales Tax Deduction
FACT SHEET: AUTO SALES AND EXCISE TAX DEDUCTION

President Obama signed "The American Recovery and Reinvestment Act of 2009" into law on February 17, 2009. The law includes a new consumer tax deduction for State and local sales and excise taxes paid to purchase a motor vehicle during 2009.


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

Sanderson Community members can contact Dave Tedder directly to receive additional benefits in addition to the Federal Tax Credits described above. Click Here to visit Dave Tedder's Sanderson Community profile page and send Dave a message about what you are interested in, or any questions you might have.