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Can i deduct a car purchase as personal property tax and sales tax

 
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1 Reply
MargaretL
Expert Alumni

Can i deduct a car purchase as personal property tax and sales tax

Yes, you can.

Personal Property Tax: 

You can deduct state and local tax that you pay for your personal property (such as boats, cars, airplanes and mobile homes).  The taxes:

  • must be assessed on annual basis and 
  • must be based on the value of your car (or other personal property), and
  • must be charged on an annual basis (even if collected differently)

Data entry:

  1. Federal Taxes
  2. Deductions Credits
  3. Car and Other Things You Own
  4. Personal Property Taxes

Sales Tax:

  1. Federal Taxes 
  2. Deductions and Credits
  3. Scroll down to Estimates and Other Taxes Paid, select sales tax

Note: The car fees/taxes are part of your itemized deductions.  If you are not itemizing your other deductions, such as mortgage interest, real estate taxes, charitable donations, claiming your car's property tax and fees will not make a difference on your tax return. 

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