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Posted

http://mauledagain.blogspot.com/2009_08_01...530034174707113

State Tax Consequences of Cash-for-Clunkers

Although the IRS has made it clear, following the language of the enacting statute, that the amounts paid by the government to auto dealers as part of the cash-for-clunkers program is gross income to the dealers but not the purchasers, there are some important questions to be answered with respect to the state tax consequences of the program.

Read the whole article for a good overview of how different states are dealing with this program.

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