You cannot deduct the cost of your new car. However, IRS allows you a possible tax break on Schedule A for the sales tax you paid on the new vehicle. To enter the sales tax deduction , simply follow:
1. After sign into your account and select Take me to
my return
2. At the right upper corner, in the
search box , type in sales tax then Enter
3. Select Jump to sales tax
4. On screen, Sales Tax and
Income Tax and select Continue with Sales Tax
5. On screen, How
do you want to enter your sales tax info ? , select EasyGuide
and follow the prompts.
You will benefit from this deduction only if your total sales tax deduction is more than the state income taxes and you are itemizing instead of taking the standard deduction.
