Can the 2009 new car tax deduction be claimed by two people?
The 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!
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August 18th, 2010 at 10:59 am
Put it on the nephew’s return as he is the owner of the car and the invoice would be in his name.
August 18th, 2010 at 11:33 am
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.
August 18th, 2010 at 11:57 am
The uncle did not “buy the car.” He just cosigned the loan. The nephew is entitled to claim the tax deduction.