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Level 1
June 6, 2019
Solved

Car registration deduction

  • June 6, 2019
  • 1 reply
  • 16 views
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
Best answer by Marketstar

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. 

1 reply

Level 12
June 6, 2019

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.