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How Does Buying a Car Affect Taxes?

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Sam Rakestraw

Answered On Mar 6, 2023

· Answered On Mar 6, 2023

When buying a car, you have the option of the IRS to either deduct sales taxes or income taxes for that year but not both. If you plan on using the vehicle for business, then that qualifies you for a tax deduction on regular operating costs. You may also be eligible for special tax credits when you buy a hybrid or electric vehicle at the same time. 

You can’t exactly control how much your taxes are, but you do have a say in how much you wish to pay for car insurance. Insurance Navy can help you get on the low-cost side of things whether you have basic or full coverage needs. Start today with a free quote to see what low rates and even discounts you may qualify for with your cheap car insurance policy.

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