Deductions & credits
It depends if you itemize or not. Personal Property Taxes are deductible on your federal and VA state returns if you choose to itemize your deductions if over the standard deduction amount..
You are correct in stating this does not have anything to do with registration and is reported separately. Here is how this is reported.
- With your return opened, go to federal.
- Deductions and Credits
- Cars and other Things you Own
- Personal Property Taxes
You can deduct state and local taxes that you pay for your personal property. Personal property is all property except real property (such as your home, vacation home, and rental property). The taxes must be assessed annually and must be based on the value of personal property you own. Examples of personal property that are often taxed include vehicles, boats, recreational vehicles, airplanes, and mobile homes.
As I mentioned, the state of Virginia conforms with federal guidelines. if you are able to itemize your deductions on your federal return, you may itemize on your Virginia State return. No exceptions!! Here is a screenshot where this entry is to be made in your federal return.
