I live in CA. I purchased a used car from a dealership in California in 2022. I paid sales tax of $1,622.40
Turbo Tax is using the standard deduction for me, which is higher than my federal itemized deductions.
Although I have reached my $10,000 limit on Federal Schedule A, line 7, under "Taxes you Paid," I can still get back a few more dollars from California if I list the $1,622.40 under "State and local personal property taxes" line c, of the Federal Schedule A (Taxes You Paid). Is it okay to go ahead and include the sales tax I paid for the car?
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No, you cannot list the sales tax that you paid for your vehicle under Other Personal Property Taxes on your schedule A of your 1040. Other Personal Property Taxes are taxes that are imposed on moving property (vehicles, boats, motorcycles, etc.) that is assessed annually. You can deduct the vehicle license fee portion of your CA registration as Other Personal Property Taxes. If you do not have your registration information that provides the vehicle license fee for your auto, please visit the CA DMV Vehicle Registration Fee Calculator to determine the amount to enter on your tax return.
If I understand your answer correctly, the key words are "assessed annually." Since the sales tax is paid one time only, at the time of the vehicle purchase, the sales taxes would not apply. Correct?
Sales tax paid when buying a car is sales tax. It’s not a personal property tax.
Turbotax has a list of states where you can deduct personal property tax. California is not one of those states. You can deduct the Vehicle License Fee (VLF) portion of your registration fee.
Is my car registration fee deductible?
TurboTax allows you to enter a total for all your sales tax receipts or you can use the federal standard amount + sale tax paid on any large purchases, such as a used car.
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