I bought a car in 2016 and had to get a loan for it. Are there any tax benefits for that? Where and what do I report if there are?

[kekurtz1982]

I paid 500 out of pocket and traded in my old car to put towards the down payment which they gave me an additional 500 for. My loan was for 16500. all taxes and fees were added into the loan amount. I have been paying on the loan since May of 2016.

[MargaretL]

Yes, there may be some tax benefits that you can report on the purchase of your car if you itemize your deductions.  If you don't claim mortgage interest, real estate taxes, other income taxes, charitable donations, etc., your car deductions will most likely not make a difference on your tax return.

Note: You can't deduct a loan interest on a personal car.

Here are your possible deductions:

 The property taxes on your car are deductible in:

1. Federal Taxes
2. Deductions & Credits
3. Car and Other Things You Own
4. Personal Property Taxes

You may be able to deduct any tax related portion of the registration fee. To be deductible, the tax portion must be based on the value of the vehicle and be charged on a yearly basis. Registration, administrative, or emission testing fees, or tag or plate fees are not deductible for federal purposes. Often, your registration form will show separate lines for each item, be sure you deduct only the portion listed as for a vehicle tax. You may be able to deduct the other fees on your state return. 

1. Federal Taxes
2. Deductions & Credits
3. Car and Other Things You Own
4. Car Registration Fees

The sales tax paid on the purchase data entry in located in:

1. Federal Taxes 
2. Deductions & Credits
3. Scroll down to Estimates and Other Taxes Paid, select Sales Tax