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Car registration fee, is it the amount you bought your vehicle for?

 
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Car registration fee, is it the amount you bought your vehicle for?

No. It is the amount that is part of the registration that is a property tax based on the value of the vehicle.  Not all states have such a tax.

In California, for example, the registration is listed on the bill as follows:

REGISTRATION FEE (not deductible)

LICENSE FEE (income tax deduction – property tax)

WEIGHT FEE (not deductible)

SPECIAL PLATE FEE (not deductible)

COUNTY/DISTRICT FEES (not deductible)

OWNER RESPONSIBILITY FEE (not deductible)

 

The TurboTax interview for Deductions and Credits, Car Registration Fees should guide you through that and determine if you live in one if the states where it can be deducted as an itemized deduction that is added to your other itemized deductions.   No tax benefit will be gained unless all of your itemized deductions are more than your standard deduction. 

 




**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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