DawnC
Expert Alumni

Deductions & credits

Cost basis includes sales tax and other expenses connected with the purchase.   It does not include the license and registration though, so do not include that fee in the basis.   But the dealer fee and sales tax are part of your cost basis.  

 

For more information on basis and adjusted basis, refer to Publication 551 and the Instructions for Schedule D (Form 1040), Capital Gains and Losses.

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