Can I deduct Local Taxes on Car lease?

rodimusprime410 · ‎January 25, 2023

I lease a car in CT and every year of the lease I have to pay local taxes on it.
It's initially paid by the bank that owns my lease then I'm responsible for paying the bank back.

Can I deduct this tax?

ZhuoliA · ‎January 26, 2023

Yes, you can deduct the local property tax you paid for the leased vehicle under itemized deduction as long as the tax amount is based on the car's value. Please see Schedule A: State and Local Personal Property Taxes for more details. TurboTax will guide you through the deduction and please see the article below for your reference.

How to enter personal property tax in TurboTax

View solution in original post

ZhuoliA · ‎January 26, 2023

Yes, you can deduct the local property tax you paid for the leased vehicle under itemized deduction as long as the tax amount is based on the car's value. Please see Schedule A: State and Local Personal Property Taxes for more details. TurboTax will guide you through the deduction and please see the article below for your reference.

How to enter personal property tax in TurboTax