Can I deduct Arizona State Tax paid to purchase ne...
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Can I deduct Arizona State Tax paid to purchase new vehicle

 
2 Replies
Level 15

Can I deduct Arizona State Tax paid to purchase new vehicle

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2019 by going to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax.  You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your new vehicle.

 

Sales tax is an itemized deduction.  If your state has a state income tax, you have to choose between using the deduction for your state tax paid OR the sales tax deduction, whichever is higher.  The TT process will suggest one or the other as you prepare your return.  And it is hard to have enough itemized deductions to exceed your standard deduction.  Unless all of your itemized deductions exceed your standard deduction, they will have no effect.

 

“Major purchases” that you can enter for the sales tax deduction include:

Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles

Aircraft or boats

Mobile homes

Manufactured housing

Building materials for major home improvements

You cannot deduct: furniture, jewelry, home electronics such as TV’s or computers

https://ttlc.intuit.com/questions/1901222-which-deduction-should-i-choose-sales-tax-or-income-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

https://ttlc.intuit.com/questions/3148443-how-do-you-define-major-purchase-or-major-item-for-the-sal...

https://ttlc.intuit.com/questions/1900791-how-do-i-find-my-local-sales-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

 

There is now a $10,000 cap on the state and local taxes you can deduct on your federal return.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Level 6

Can I deduct Arizona State Tax paid to purchase new vehicle

In your itemized deductions, you can opt to deduct state income taxes or state sales taxes.

 

If you opt for state sales taxes, you can deduct the Arizona sales tax paid on the purchase of a new vehicle (in addition to general sales tax calculated by the IRS calculator). You can use this deduction only if you itemize.

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