bluesguy
New Member

Can I count both the registration fee and a personal property tax in colorado on new car?

Just got a new car in 2017 in Colorado. Can't get a straight answer to, "Can I deduct both the allowable registration fee and personal property tax based on the amount of tax I paid at the time of purchase?". Or, must I claim only one or the other? I understand that to claim the personal property tax deduction it must be assessed annually, and even though I don't get a tax bill every year for the car, I do pay a registration fee (also a tax?) every year based on assessed value of the car. I'm so confused on this issue. Appreciate any help. Thanks!

DawnC0
Intuit Alumni

Deductions & credits

The part of your Colorado vehicle registration fee that is deductible on your federal return is the ownership tax. The specific ownership taxes you paid for a registration should be on the back of your registration receipt.  You can deduct this fee in either the registration fee section or property tax section, but not both.  No matter which section you enter it in, it will go to 'Personal Property Tax'.   

https://www.colorado.gov/pacific/dmv/taxes-and-fees 

https://turbotax.intuit.com/tax-tips/tax-deductions-and-credits/is-your-car-registration-deductible/...  - Highlight of this article is that you can deduct fees as property taxes if the fee is value-based and assessed on a yearly basis.  The IRS considers these to be a personal property tax.

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Don't forget to also claim the sales tax paid on your new vehicle as your total sales tax may be a higher deduction than state and local income tax paid.  You will be given the option to choose which one you want to take.   You can take this in addition to the registration portion (ownership tax).   

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