Tuesday, April 7, 2009

Tax Savings on New Cars!

The recent stimulus program passed by Congress had a couple of provisions I was not aware of when we bought our Prius. For new cars purchased between certain periods,

  1. We can deduct sales taxes from your federal taxes. (Our state does not charge sales taxes on Hybrids – no benefit).
  2. We can deduct interest charges on the loan.

Since we put a large down payment, the savings won't be huge, but every dollar helps.

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