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ml_l
Level 1

California New Car Purchase in 2019.

What costs are either a credit or a or possible deduction when filing?

3 Replies
BillM223
Employee Tax Expert

California New Car Purchase in 2019.

Are you talking about an electric car? Or are you talking about a car for business use? Why do you think that there is a credit or a deduction for buying a new car in California?

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Shem3894
New Member

California New Car Purchase in 2019.

Two questions:

1) My car was totaled in 2018, and the costs of replacing the car exceeded what was received from the insurance settlement.  Are any of the additional costs incurred by me to be made whole deductible on taxes, either federal or state?  **My assumption is no, but I thought I would check**

 

2) In response to the purchase of a new car and registering it with California in the first year, I imagine there are some fees on the registration when it's done with the DMV that are deductible.  Looking through the receipt I got from the DMV, there are fees for: 01 - Curr RF $XX / 02 - Curr CHP $26 / 03 - Curr VLF $XX / 04 Curr Safe / 5 Curr FID / 06 Curr ABN VEH / 07 Curr AIR QLT / 08 ALT FUEL RF / 09 CUR AUT/DUI2 / 10 TIF / 11 USE TAX / 12 CITY USE TAX / 13 N/R ORIG SF / 14 RLP FEE.  And then a total.

 

Is the total amount paid to the CA DMV deductible?  Is only the VLF Fee deductible?  Or can I also deduct numbers 11, 12, and 13? It's not clear what is allowed and what is not.

RobertG
Expert Alumni

California New Car Purchase in 2019.

You can claim a casualty loss on the unreimbursed amount, but you won't get a benefit from it unless you itemize and the loss is over 10% of your AGI. 

 

You can’t deduct the total amount you paid for auto registration, only the portion of the fee that’s based on your vehicle’s value. In California, the Vehicle License Fee (VLF) portion of your registration fee is the deductible amount.

 

For further information please see the TurboTax website:   Is my car registration fee deductible?

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