June 17, 2009 12:00 am

Deduction for Taxes on New Car Purchases in States with No Sales Tax

The American Recovery and Reinvestment Act of 2009 created a new deduction for state and local sales and excise taxes paid on the purchase of a new motor vehicle. But what if you live in Alaska, Delaware, Hawaii, Montana, New Hampshire, and Oregon,

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Tax Glossary

Capital gain distribution

A mutual-fund distribution allocated to gains realized on the sale of fund portfolio assets. You report the distribution as long-term capital gain even if you held the fund shares short term.

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