Tax Benefits & Deductions from Buying a New Car

Take Advantage of Tax Benefits You Might Not Be Aware Of

When tax time rolls around, figuring out where you can make your deductions is everyone's number one priority. After all, why pay more in taxes if you don't have to, and if you've purchased a new vehicle in the past year from Happy Valley Car Credit, you might not be aware that there are tax benefits you can take advantage of.

Depending on your situation, the sales tax you paid on the purchase of a new vehicle can be deducted on your tax filing this year, though there are a few stipulations. For one, the tax you deduct can only be the Pennsylvania state and local sales tax, and you can only do this if you decline the deduction for your state income tax. Of course, the numbers may vary from those living in Bellefonte to those in Tyrone PA, so to put it simply, whichever taxes were higher, those are the ones you should deduct.

Of course, as any experienced tax pay knows, it's not enough to tell the government that you paid the taxes and they in turn just take you at your word. It's always a great idea to save your sales receipts, so when you need proof to validate your claim, you can simply send a copy of it along with your paperwork. This is the best way of calculating your deduction as it's concrete proof of the exact amount that you paid.

However, if you didn't save the receipt, or simply lost it, there is an alternative. Simply flip over to the IRS' sales tax table to find the closest estimation to your deduction based on the price you paid.

At Happy Valley Car Credit, we want all our Altoona and Lewistown PA customers to gain every advantage they can during tax season. It's our way of saying thank you to everyone who was gracious enough to give us your business.

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Happy Valley Car Credit

3220 W College Ave
Directions State College, PA 16801

  • Sales: (814)-238-2447

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