Time running out for tax break on new car - KPLC 7 News, Lake Charles, Louisiana

Time running out for tax break on new car

By Crystal Price - bio | email

LAKE CHARLES, LA (KPLC) - It is time once again for year end sales at local car dealerships throughout the lake area.

"The week between Christmas and New Year's is when business picks up a lot," says Corey Tarver, Sales Manager for Lake Charles Toyota.

But this year, car buyers are getting more than their typical marked down end of the year prices.

If you buy a new car before December 31st, there is a special federal tax deduction on a brand new car.

This incentive stems from the American Recovery Reinvestment Act that started back in February.  

"It is just a tax deduction where the sales tax you paid will be written as a tax deduction so that it decreases on your taxable income," says Tarver.

While this tax break expires in less than two weeks, dealerships want to remind consumers of the advantage before it is too late.

"The big thing is it is free money," says Tarver. "If you wait a couple more days, then it's just money out of your own pocket."

The deduction applies to taxes paid on up to $49,500 of the purchase price for qualified new cars, light trucks, motorcycles, and motor homes.

John Owens of Jackson Hewitt Tax Service says it is a great opportunity for folks to save money.

"The great thing it's going to do for them is its going to reduce the amount of taxes that they're actually going to have to pay on their tax return," says Owens.

But it's not a credit like some may think.

"It's not a dollar for a dollar difference in the amount of tax owed," says Owens. "It is a deduction that reduces the amount of your taxable income down. This way you don't owe a bunch of taxes next year."

If you still need to take advantage of the tax break, you have until the last day of the year.

For more information click on "New Car Sales Tax Deduction."

Copyright 2009 KPLC. All rights reserved.

  • More Local NewsNewsMore>>

  • Rabies clinic held at Burton after rain delay

    Rabies clinic held at Burton after rain delay

    Sunday, May 20 2018 12:18 PM EDT2018-05-20 16:18:31 GMT

    The annual rabies clinic hosted by the Calcasieu Parish Policy Jury and Calcasieu Parish Animal Services was held at Burton Coliseum Saturday morning. The event was originally scheduled for Apr. 14 but was canceled due to rain. Hundreds of pet owners lined up in the parking lot to get their cats and dogs vaccinated at the low-cost event. Calcasieu Parish and Louisiana codes require all cats and dogs over 3 months to be vaccinated and licensed. Assistant Director Wyvette Pryor-...

    More >>

    The annual rabies clinic hosted by the Calcasieu Parish Policy Jury and Calcasieu Parish Animal Services was held at Burton Coliseum Saturday morning. The event was originally scheduled for Apr. 14 but was canceled due to rain. Hundreds of pet owners lined up in the parking lot to get their cats and dogs vaccinated at the low-cost event. Calcasieu Parish and Louisiana codes require all cats and dogs over 3 months to be vaccinated and licensed. Assistant Director Wyvette Pryor-...

    More >>
  • Man arrested after barricading himself and hostage in Jennings residence

    Man arrested after barricading himself and hostage in Jennings residence

    Sunday, May 20 2018 12:09 PM EDT2018-05-20 16:09:26 GMT
    Frederick Kelvin Mixon (Source: Jeff Davis Parish Sheriff's Office)Frederick Kelvin Mixon (Source: Jeff Davis Parish Sheriff's Office)
    Frederick Kelvin Mixon (Source: Jeff Davis Parish Sheriff's Office)Frederick Kelvin Mixon (Source: Jeff Davis Parish Sheriff's Office)
    A Jennings man has been arrested after barricading himself and a hostage in a residence, according to Chief Deputy Christopher Ivey with Jeff Davis Parish Sheriff's Office. At approximately 5:50 a.m. on Sunday, JDPSO responded to a hostage and barricaded subject with a firearm on South Cutting Avenue in Jennings. Ivey says the hostage was released at around 6:10 a.m., but the barricaded subject stayed inside threatening to come out shooting or commit suicide. The suspect surrendere...More >>
    A Jennings man has been arrested after barricading himself and a hostage in a residence, according to Chief Deputy Christopher Ivey with Jeff Davis Parish Sheriff's Office. At approximately 5:50 a.m. on Sunday, JDPSO responded to a hostage and barricaded subject with a firearm on South Cutting Avenue in Jennings. Ivey says the hostage was released at around 6:10 a.m., but the barricaded subject stayed inside threatening to come out shooting or commit suicide. The suspect surrendere...More >>
  • Vehicle led four law enforcement agencies on high-speed chase on I-10

    Vehicle led four law enforcement agencies on high-speed chase on I-10

    Saturday, May 19 2018 8:11 PM EDT2018-05-20 00:11:21 GMT
    Travis Salvador Chavira (Source: Louisiana State Police)Travis Salvador Chavira (Source: Louisiana State Police)

    A man has been arrested after a high-speed chase with multiple local law enforcement agencies on Saturday, according to Sgt. James Anderson with Louisiana State Police. A state trooper attempted to pull over a vehicle on I-10 for speeding when they did not stop, says Anderson. The vehicle exceeded speeds of 100 mph and led Louisiana State Police, Calcasieu Parish Sheriff's Office, Vinton Police Department, and Sulphur Police Department on a 33-minute chase through Vinton and Sulphur....

    More >>

    A man has been arrested after a high-speed chase with multiple local law enforcement agencies on Saturday, according to Sgt. James Anderson with Louisiana State Police. A state trooper attempted to pull over a vehicle on I-10 for speeding when they did not stop, says Anderson. The vehicle exceeded speeds of 100 mph and led Louisiana State Police, Calcasieu Parish Sheriff's Office, Vinton Police Department, and Sulphur Police Department on a 33-minute chase through Vinton and Sulphur....

    More >>
Powered by Frankly