Sales Tax Deduction for Leased Car - Personal Use

Forum|Forum|5 years ago
March 19, 2021
1 reply
2 views

I have a few questions regarding sales tax deduction for leased car used for personal use, to start I am filing using itemized deductions.

I started a new car lease at the end of 2020, would I include ALL sales tax that I paid and will pay in the future in this year deduction or only for the months I paid sales tax with my lease payment? Also, are there any other sales tax deductions I would include in this 2020 tax filing, cap cost reduction tax?

I did have 2 other leased vehicles in 2020 but the leases started in prior years, would I deduct the sales tax from those payments as well?

Thank you in advance!

TurboTax Deluxe Online

Best answer by ToddL99

If the monthly lease invoices specifically include a sales tax amount, then you can deduct that amount in the year it is paid. This also applies to cars leased in prior years.

This would not count as a "major purchase", so you'd have to calculate your sales tax deduction using the "Enter All My Receipts" function, not the Easy Guide.

See the following screenshot for aid in navigation.

ToddL99Answer

Level 13

If the monthly lease invoices specifically include a sales tax amount, then you can deduct that amount in the year it is paid. This also applies to cars leased in prior years.

This would not count as a "major purchase", so you'd have to calculate your sales tax deduction using the "Enter All My Receipts" function, not the Easy Guide.

See the following screenshot for aid in navigation.