The amount that flows to Schedule A line 5c is from the Tax & Int Wks. That Wks literally calls for "Auto registration fees based on the value of the vehicle."
Let's take the case where there are no fees for weight, owner responsibility or special plate fees …i.e., all zero. (Judging by their names, these are not dependent on vehicle value per se.) The remaining line item fees on the DMV invoice that do not change with differing auto vehicles (determined by examining the bills for several vehicles of different value as you may also have) are smog abatement and county tax. The vehicle registration fee and the vehicle license fees both change value with the particular vehicle - presumably because the vehicle has a different value. On the examples viewed, the vehicles with the most value based on original purchase price and age have the highest registration fee amount and the highest VLF (i.e., vehicle License Fee – “may be an income tax deduction”). The latter therefore presumably change based on vehicle value and by the qualifying criteria above are prospects for tax deduction. So, I don't understand why the CA DMV calculates only the vehicle license fee VLF as being deductible when the registration fee changes from vehicle to vehicle and decreases over the years just like the VLF. The registration fee is therefore not a fixed amount as are the smog abatement (on some vehicles) and county fees. Anyone understand this? Could this be bad advice from the DMV??
In the case of Schedule C returns with Car & Truck Wks entries, you can deduct both the fixed fees and the value (i.e.'property tax') portions. In the case that your business vehicle mileage is pro-rated for business vs. personal use, that form then allows only the business portion, computes the personal portion and transfers that to the Tax and Int Wks which then combines the personal portion with other tax entries and transfers the total to line 5c of Schedule A. The personal pro rata share of the fixed fee portion (smog abatement and county district fees) is NOT transferred outside the Car & Truck form for schedule C.
