Four Weeks Remain on New Car Tax Deduction for 2009

SPOKANE, Wash.--Vehicles are most families� second largest household expense, and there are about 30 days left to buy a new vehicle and qualify for federal income tax deductions under the American Recovery and Reinvestment Act of 2009. Qualified buyers purchasing new cars, light trucks, motor homes and motorcycles with a value less than $49,500 by December 31 are eligible. Gee Automotive is currently selling more than 30 of the qualifying models from GMC, Cadillac, Chevy, Hummer, Kia and Nissan at its stores.

The terms of the tax code provide a deduction for state, local sales and excise taxes when buying a new vehicle for business or personal use. It has fewer restrictions than the earlier Cash for Clunkers program, for example it does not require a trade-in or specified car efficiency. Those who purchased under Cash for Clunkers program also qualify for this tax deduction.

�We want families and business owners who are in a position to make this purchase in coming months to know that there are significant federal tax incentives available if you do so by the end of the year,� says Ryan Gee, president and CEO of Gee Automotive. �Depending on the vehicle you purchase, your income and tax bracket, state of residency, and how the vehicle will be used, it�s fair to say that the deductions could result in tax savings $300 to $1200 for families, and even more for businesses.�

How it works for families

In documents put out by Senator Barbara Mikulski (D-MD) earlier this year, she outlines that, depending upon your state, a family making less than $250,000 buying a Ford F-150 pick-up truck costing $35,000 could see a deduction of about $2100, and a tax savings of about $600. A family making less than $150,000 a year buying a Dodge Minivan for $25,000 would see a deduction of about $1500 and a value of about $420 when they receive their return for 2009.

How it works for businesses

KPMG, the audit, tax and advisory firm, ran a business-owner scenario where a qualified SUV was purchased for $50,000. Assuming 100 percent business use, in 2009 the taxpayer would be able to utilize the Section 179 deduction, a bonus depreciation deduction, and MACRS depreciation for a net deduction of about $40,000, or 80 percent of the cost of the vehicle.

Gee resources

Gee Automotive has provided further details that can be viewed at www.goseegee.com/cars. In summary:

* The 2009 economic stimulus plan authorized new vehicle tax rebates for United States consumers and business owners. The rebate applies to state and local sales and excise taxes paid on up to $49,500 of the purchase of a qualified vehicle in 2009. * In order to receive the 2009 New Car Tax Rebate, you must purchase a qualified vehicle, such as a car, SUV, light truck, motorcycle, or motor home. The vehicle (with the exception of the motor home) cannot exceed a weight of 8,500 pounds. * The New Car Tax Rebate is a deduction, not a credit. This means, you'll pay for the purchase taxes when you buy the vehicle, but you'll be entitled to a tax return deduction, lowering your taxable income for 2009. * Not everyone qualifies for the New Car Tax Rebate. The full deduction is only available to individuals making $125,000 or less. There is a partial deduction for incomes between $125,000 and $135,000, but anyone over $135,000 is excluded from the rebate. * Vehicles purchased within the Cash for Clunkers program still benefit from the New Car Tax Rebate. * Gee Automotive is currently offering more than 30 vehicles qualifying for the 2009 New Car Tax Rebate.

Government resources

With any tax question, Gee Automotive recommends customers discuss the 2009 New Car Tax Rebate with your tax advisor to see how it may effect your individual situation. The IRS offers a video summary and more information can be found at www.irs.gov.

About Gee Automotive Companies

George Gee founded his first auto dealership in Spokane, Washington in 1983. Today, Gee Automotive Companies had grown to consist of new and used car dealerships located in Pasco, Washington and Coeur d'Alene, Idaho, with a 68,000 square foot flagship location in Liberty Lake, Washington at 21502 E. Mission. Gee dealerships carry Buick, Pontiac, GMC, Hummer, Porsche, Nissan, Cadillac, and Kia throughout Eastern Washington and Northern Idaho. The company has 139 employees and is locally owned and operated.