| In the best of economies, saving money is a good thing | | | | $125,000 and $135,000 or a joint income between |
| - in an economy like this, it's essential. If you're | | | | $250,000 and $260,000, the amount of the deduction is |
| considering buying a new automobile and want to be | | | | decreased as the income increases. All of those with |
| as cost-savvy as possible, a new car tax deduction | | | | income of below $125,000 (filing singly) or $250,000 |
| means that now might be the very best time. | | | | (jointly) are eligible. |
| Part of the American Reinvestment and Recovery | | | | The weight of the car purchased also affects your |
| Act (i.e., the Federal Stimulus Bill), this deduction was | | | | ability to take part in this offer. While most cars, |
| originally envisioned as a credit, before final legislation | | | | motorcycles, light trucks, motor homes, SUV's and |
| gave it is current form. In either form, it provides vital | | | | RV's are eligible, those weighing more than 8500 |
| financial relief for both car shoppers and the flagging | | | | pounds (4.25 tons) are not. The latter group includes |
| automobile industry. Take heed, however: time is | | | | the Hummer H1, which weighs in at 10300 pounds and |
| running out for those who want to take advantage of | | | | the Hummer H2, which tips the scales at 8600 pounds. |
| the savings provided by this new car tax deduction, as | | | | The downright svelte H3 (6001 pounds) is available for |
| it only applies to cars purchased before December 31, | | | | the new car tax deduction. |
| 2009. | | | | While not available to businesses, redeeming this new |
| Not everybody qualifies for this new car tax deduction: | | | | car tax deduction could mean big savings for |
| Those filing singly with a reported income of more than | | | | individuals or families looking for a new vehicle. Time is |
| $135,000 or filing jointly for more than $260,000 are | | | | running out for those looking to save - this new car tax |
| ineligible. For those with a single income between | | | | deduction will be gone with the new year. |