topic Re: Sales tax on leased vehicle? in Deductions & credits

Sales tax on leased vehicle?

Debers17 — Fri, 31 May 2019 23:48:13 GMT

I have leased a vehicle in Nov. 2014 in California. The lease is for 36 months so right now the sales tax/use tax is only calculated on the 36 mos. The purchase price before tax was $22,000. Do I claim the taxes on the full price of the vehicle or only the amount on the 36 mos lease? If I only claim the tax for the 36 mos, do I claim the remainder of the sales tax on the residual when we purchase the vehicle at the end of the lease term (which we plan to do)?

The deduction for your sales tax payments is only availab...

TraceyTS — Fri, 31 May 2019 23:48:14 GMT

The deduction for your sales tax payments is only available if you are eligible to itemize. To make this determination, add up all of your expenses that are eligible to be itemized, including your sales taxes. If the total amount is greater than the standard deduction amount for your filing status, then you can itemize on Schedule A and claim the sales tax deduction. If not, then you can still itemize but are probably better off claiming the standard deduction where you cannot deduct the sales tax.

You may deduct the sales tax you pay on a leased vehicle. The amount that is deductible is the amount you paid in 2014 at the signing of the lease. You can not deduct unpaid taxes on future purchases.

If your lease is for business use, you may deduct the sales tax as business vehicle expense on Schedule C. However, again, you will only deduct the amount you paid.

I hope this information has been helpful.

Do i base it from the initial down payment? I paid $6,000...

khamiea17 — Fri, 31 May 2019 23:48:15 GMT

Do i base it from the initial down payment? I paid $6,000 on a car lease Dec2017 but i can't locate the sales tax on the agreement as how much it was. If, so how do i calculate this on my federal tax?

Re: Sales tax on leased vehicle?

Sharaj2016taxes — Mon, 17 May 2021 19:45:43 GMT

I purchased a vehicle through leasing agreement

the sales tax is not separately noted on the leasing agreement. I paid about $7000 in down payment. Fir my tax deduction how do I itemise the sales tax I paid on the transaction?

Re: Sales tax on leased vehicle?

DaveF1006 — Mon, 17 May 2021 21:39:48 GMT

To claim the sales tax.

Log into Turbo Tax
Go to federal>deductions and credits>
Estimate and other Taxes paid
Sales Tax