On January 9th, Congressman Mike Rogers introduced legislation to give a deduction for 2009 taxes for the private purchase of a new car this year. If passed, the quicker you buy, the bigger the deduction. The bill has moved to the House Ways and Means committee for review. Good Luck! Here’s how part of the bill reads…
‘SEC. 224. INCENTIVES TO CONSUMERS AND LENDERS FOR THE PURCHASE OF A PASSENGER VEHICLE DURING 2009.
‘(a) Deduction for Consumer Purchases- In the case of an individual, there shall be allowed as a deduction an amount equal to the purchase price of any qualified vehicle placed in service by the taxpayer during the taxable year.
‘(b) Dollar Limitations- The deduction allowed by subsection (a) with respect to each qualified vehicle shall not exceed–
‘(1) $7,500 if such vehicle is placed in service during the 90-day period beginning on the date of the enactment of this section,
‘(2) $5,000 if such vehicle is placed in service during the 90-day period beginning on the day after the period described in paragraph (1), and
‘(3) $2,500 if such vehicle is placed in service after the period described in paragraph (2).
and skipping to item “D” now…
‘(d) Deduction for Consumer Loans To Purchase Qualified Vehicles; Exclusion From Lender’s Gross Income- In the case of interest on any loan secured by a qualified vehicle and used by the purchaser to purchase such vehicle–
‘(2) the gross income of the lender shall not include 50 percent of such interest received or accrued on such loan during the taxable year.
Here’s the full text of the bill!
From the Archives — originally published on the Opelika Daily News on January 24, 2009. View the original page.
