topic Can I deduct the personal sales tax for a car bought on 12/29/17 in 2017 but include the rest in my cost basis for 2018 if I placed it into service on 1/2/18? in Deductions & credits

Can I deduct the personal sales tax for a car bought on 12/29/17 in 2017 but include the rest in my cost basis for 2018 if I placed it into service on 1/2/18?

pambrown2 — Tue, 04 Jun 2019 19:26:57 GMT

I want to use 2018 as the first year for depreciation as that's the year I placed it into service (55% business use, 45% personal) but want to claim the personal part of the sales tax on Schedule A for 2017.

Yes, you can deduct the sales tax in the year you purchas...

DanO — Tue, 04 Jun 2019 19:26:58 GMT

Yes, you can deduct the sales tax in the year you purchased the vehicle, and you can use January 2, 2018 as the date the new asset was first placed in service.

Thanks. That's what I thought. I'm assuming that I can us...

pambrown2 — Tue, 04 Jun 2019 19:27:00 GMT

Thanks. That's what I thought. I'm assuming that I can use the purchase price as the FMV since I placed it into service just three days after I bought it, correct?

Yes, the purchase price!

DanO — Tue, 04 Jun 2019 19:27:01 GMT

Yes, the purchase price!

Thanks!

pambrown2 — Tue, 04 Jun 2019 19:27:03 GMT

Thanks!