@cgmartin wrote:
I just reviewed the previous year's taxes, and it refreshed my memory that in the "Taxes You Paid" section of federal Schedule A, my combined state and local taxes and federal income tax paid, always exceed $10,000, which means that for my wife and I, there is a cap of $10,000 (line e - Enter the smaller of line 5d or $10,000.) As a result, even if I include the license fees on all five vehicles I own, anything over $10,000 is not deductible.
That sounds correct for you under the new laws.
For other people reading, a "license fee" is only deductible if it is based on the value of the vehicle as a personal property tax. There is a long list of fees in California, and only the "vehicle license fee", which is 0.65% of the value of the vehicle, is tax deductible.
https://www.dmv.ca.gov/portal/vehicle-registration/registration-fees/
