Does financing a vehicle (not to mention paying a $2000 sales tax) with a $5000 down payment get you a tax break of some sort?

[duom007]

Now Im not one who keeps receipts and adds up all his sales tax for the year.. I mean if youre purchasing something for 20 bucks and paying 1 dollar tax r something thats 400 bucks and paying 50 bucks in tax thats not a huge deal to me. But almost $2000 in sales tax for one purchase is. So if I include that and jut that in my itemized stuff (assuming thats where you would put it) should I expect it to affect my tax return in any way at all?

Also will the Free version of Turbotax do that job?

[VolvoGirl]

Unless it has changed for 2018 since many things have changed........If you don't have a state income tax or elect to take the sales tax deduction instead of the state income tax deduction, you can add the new or used car sales tax paid (even if you financed it) to the amount of the sales tax from the IRS table to get your deduction.  You have to use Deluxe or higher to enter Itemized Deductions.

Do you think you will have enough to itemize this year?  This year the Standard Deduction will be doubling so many people will be switching to the Standard Deduction.  And there is a max 10,000 limit of property tax and state taxes "SALT".

FAQ on 2018 changes <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4482394-how-will-tax-reform-affect-my-2018-federal-tax-return">htt...>

For 2018 the standard deduction amounts are:
Single 12,000 + 1,600 for 65 and over or blind
HOH 18,000 + 1,600 for 65 and over or blind
Joint 24,000+ 1,300 for each 65 and over or blind
Married filing Separate 12,000 + 1,300 for 65 and over or blind

[Carl]

Purchase of a personal vehicle gives you no tax breaks what-so-ever on the purchase price, down payment, or interest on a car loan. That's never been deductible. However, there are some "tax credits" for specific types of vehicles, such as for purchasing an electric vehicle. The program walks you through those if you tell the program (when it asks) that you purchased such a vehicle in 2018.

[Opus 17]

There no general tax breaks for buying, owning or financing a personal vehicle.  When Congress favors a particular vehicle (such as, plug-in hybrids and all electric) they may create a specific tax credit.  If you bought a qualifying vehicle, you can run that part of the interview and see if you qualify for a credit.

Some expenses for vehicles used in business can be deducted, and that can include financing charges and wear and tear, but you must be self-employed.  The deduction for using your personal vehicle for work if you are a W-2 employee was eliminated in the tax reform act.

If you choose to take an itemized deduction for sales tax instead of state income tax, you can include the vehicle sales tax in the itemized deductions.  But fewer than 30% of taxpayers itemize their deductions, most will use the standard deduction because it is larger for most people.