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Level 1
June 3, 2019
Solved

I purchased a Toyota Prius 2016 and i'm trying to add this to my deductions & credit section. Is this possible?

  • June 3, 2019
  • 1 reply
  • 0 views
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Best answer by MargaretL

Yes - it is possible. You can deduct sales tax, property tax and car registration fee (if applicable in your state). Please see below for details:

The property taxes on your car are deductible in:

  1. Federal Taxes
  2. Deductions Credits
  3. Car and Other Things You Own
  4. Personal Property Taxes

You may be able to deduct any tax related portion of the registration fee. To be deductible, the tax portion must be based on the value of the vehicle and be charged on a yearly basis. 

  1. Federal Taxes
  2. Deductions Credits
  3. Car and Other Things You Own
  4. Car Registration Fees

The sales tax paid on the purchase data entry in located in:

  1. Federal Taxes (Personal Self Employed version)
  2. Deductions and Credits
  3. Scroll down to Estimates and Other Taxes Paid, select sales tax

Note: The car fees/taxes are part of your itemized deductions.  If you are not itemizing your other deductions, such as mortgage interest, real estate taxes, charitable donations, claiming your car's property tax and fees will not make a difference on your tax return. 

1 reply

MargaretL
MargaretLAnswer
Level 12
June 3, 2019

Yes - it is possible. You can deduct sales tax, property tax and car registration fee (if applicable in your state). Please see below for details:

The property taxes on your car are deductible in:

  1. Federal Taxes
  2. Deductions Credits
  3. Car and Other Things You Own
  4. Personal Property Taxes

You may be able to deduct any tax related portion of the registration fee. To be deductible, the tax portion must be based on the value of the vehicle and be charged on a yearly basis. 

  1. Federal Taxes
  2. Deductions Credits
  3. Car and Other Things You Own
  4. Car Registration Fees

The sales tax paid on the purchase data entry in located in:

  1. Federal Taxes (Personal Self Employed version)
  2. Deductions and Credits
  3. Scroll down to Estimates and Other Taxes Paid, select sales tax

Note: The car fees/taxes are part of your itemized deductions.  If you are not itemizing your other deductions, such as mortgage interest, real estate taxes, charitable donations, claiming your car's property tax and fees will not make a difference on your tax return.