Can the 2009 new car tax deduction be claimed by two people?
May 1st, 2010The exact scenario is an uncle and a nephew bought a car. The uncle was the co-signer, but the nephew is the driver and ‘owner’.
When doing 2009’s tax return, can only one person claim this deduction or can they each claim 50% of the cost?
Thanks!
Replys
Put it on the nephew’s return as he is the owner of the car and the invoice would be in his name.
Legally, only one person can claim the tax credit. The exception would be a married couple filing jointly. A marriage between an uncle and a nephew is not recognized by the IRS.
The uncle did not "buy the car." He just cosigned the loan. The nephew is entitled to claim the tax deduction.
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