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Car registration deduction
I bought a van last year, can I deduct the total amount of tax I paid or is it just after renewal when it's deductible
MarketstarAnswer
Level 12
Jun 6, 2019 10:12 AM UTC
Yes, you can deduct tax paid in the year of purchase, see below.
To deduct sales tax paid on a new car, you take it as a deduction on Schedule A. Go to Deductions & Credits>Estimates and Other Taxes Paid>Sales Tax.
To deduct registration fee, you take it as a deduction on Schedule A. Go to Deductions & Credits>Cars and Other Things you Own>Car Registration Fees. Depending on the state in which you live, you may or may not be able to deduct it.
