can i deduct tax paid on purchased new vehicle in colorado

[SabrinaD2]

Yes, you may be able to deduct certain taxes paid on a new vehicle purchased in Colorado, but only specific portions of the vehicle registration fees are deductible. Here's how it works:

• Deductible Portion: The deductible part of your Colorado vehicle registration fee is the ownership tax. This tax is based on the value of your vehicle and is considered a personal property tax
• Non-Deductible Portions: Other fees such as license fees, emissions testing fees, and administrative fees are not deductible

To enter this information in TurboTax:

1. Open or continue your return.
2. Navigate to the car registration section:
   • Go to car registration. or go to magnifying glass at top right of screen and Search for car registration and select the Jump to link.
3. Answer Yes to Did you pay any car registration fees in 2024? and then enter them on the next screen.

For more detailed guidance, you can refer to the following sources:

• TurboTax Help Article on Deductible Car Registration Fees
• Accounting Insights on Colorado Vehicle Registration Tax