California vehicle registration fee

[amelia-populis]

I paid my 2015 registration in 2015, but also paid my 2016 registration in 2015. Does it count the year that I paid it, or the year of the registration? (should I count both payments made in 2015?)

[ChelsiE2 · Accepted solution]

You can deduct the amounts actually paid Jan 1, 2015 - Dec 31, 2015.  If you paid both your 2015 and 2016 amounts during the 2015, then deduct both on your 2015 return.  

Please note: the amount deductible from your California Vehicle Registration Billing Notice is only the amount titled California motor vehicle license fee, not the entire amount you pay to the CA DMV.

[fester69]

Agreed.  Most all deductions are considered such during the year the expenses were incurred/paid, not when they were actually due.

[gyounghwa]

is the same rule applicable for leased car?

[ChelsiE2]

Yes, same rules apply to leased cars.

[boogershome]

I paid $357 total to register my small business vehicle. Shouldn't the whole amount qualify for a deduction? It is all a business expense not just the license fee portion.

[ChelsiE2]

@boogershome Taking a deduction for registration fees under the Taxes Paid section of Schedule A has different rules than taking a deduction for a car used for business purposes.  When you are entering your actual car expense for a car related to your business, you would want to include all expenses you actually paid for the car.  This would include your entire vehicle registration fee.

[rk1]

But if you take standard mileage rate, (rather than actual expenses), I think only the license fee can be added separately (in california). And then it is pro-rated if you also use the vehicle for personal use (though it's unclear if TT actually prorates it).

[hireanea]

You can get the deductible portion at https://www.dmv.ca.gov/FeeCalculatorWeb/vlfForm.do - The VLF is deductible in the year PAID, regardless of what registration year it might be for.