Can I deduct the purchase of a vehicle as a result of a relocation for work?

Forum|Forum|2 years ago
January 18, 2024
3 replies
55 views

I previously lived in NYC and did not require a car for work. I was forced to relocate to NC to keep my job with the same company.

TurboTax Deluxe Online

Critter-3

Level 15

xmasbaby0

Level 15

No, that is a personal expense, not deductible on a tax return.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Texas Roger

Level 15

While you cannot deduct the purchase price of the car, you may be able to deduct the sales tax you paid for it and a portion of the registration fees. To deduct them, you must itemize deductions on your tax return rather than taking the standard deduction and you must deduct sales taxes rather than state income tax if your state has a state income tax. The only part of the registration fee that could be deducted would be the portion, if any, of the fee that was based on the value of the car.

See this TurboTax help:

https://turbotax.intuit.com/tax-tips/tax-deductions-and-credits/is-your-car-registration-deductible/L06ja6RwR#:~:text=Annual%20car%20registration%20fees%20may,be%20claimed%20as%20a%20deduction.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/define-major-purchase-major-item-sales-tax/L95I4dBi1_US_en_US#:~:text=A%20motorized%20vehicle%20(car%2C%20truck,it%20doesn't%20apply).