Yes, you can deduct the sales tax in full in the year of purchase even if financed.
To enter your sales taxes and major purchases in TurboTax Online or Desktop, please follow these steps:
- Once you are in your tax return,
click on the “Federal Taxes” tab ("Personal" tab in TurboTax
Home & Business)
- Next click on “Deductions &
Credits”
- Next click on "jump to full
list" or “I’ll choose what I work on”
- Scroll down the screen until to
come to the section “Estimates and Other Taxes Paid ”
- Choose "show more", then
Sales Tax (start/update/revisit)
- Choose - continue to sales tax and
choose "Easy Guide"
- If your state sales tax
information is already entered you will need to edit it to enter your
major purchases information.
- On the screen that says Major
Purchase - select "yes"
- Enter your car information and use
tax here on the next screen (see attached screenshot)
