The new Georgia Title Ad Valorem Tax (TAVT) is not deductible as a
property tax as it is not imposed on an annual basis. Instead it appears
to be a tax in the nature of a sales tax. Thus the tax would be
deductible on Schedule A of Form 1040 if you itemize as part of your
state and local sales tax paid, however if you choose to deduct sales
tax you cannot claim the deduction for state income taxes paid. Note
because the deduction for state, local, or foreign taxes is based on
taxes paid or accrued you can claim the deduction in the year you bought
the car even if you finance the taxes as a part of the loan.
