It is official, according to KickingTires, state and local sales and excise taxes on new-vehicle purchases are deductible on your 2009 Federal income taxes. This deduction is available for individuals with an adjusted gross income of less than $125,000, or for joint filers under $250,000. The deduction phases out for taxpayers whose adjusted gross incomes fall between $125,000 and $135,000 for individuals and between $250,000 and $260,000 for joint filers.The deduction is only good for the taxes paid on a vehicle up to $49,500 of the purchase price. The law is retroactive, so if you purchased a car after Feb. 16, 2009, you may take the deduction.
