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posted May 31, 2019 11:29:56 PM

I bought a new car and sold an old car in 2016. I live in VA and paid VA sales tax on new car, but bought new car and sold old car in TN. What do I do?

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Alumni
May 31, 2019 11:29:57 PM

The answer is possibly if you are itemizing deductions.  The sales tax on the motor vehicle is added to the "normal" sales tax that the IRS allows as a default should you opt to deduct sales taxes instead of income taxes.  In addition, VA has "personal property tax relief" for personal vehicles outline in https://www.dmv.virginia.gov/general/#pptr/summary.asp .  No portion of the VA DMV state registration qualifies as a federal itemized deduction because those fees are not based on the automobile's value, but on its weight.



1 Replies
Alumni
May 31, 2019 11:29:57 PM

The answer is possibly if you are itemizing deductions.  The sales tax on the motor vehicle is added to the "normal" sales tax that the IRS allows as a default should you opt to deduct sales taxes instead of income taxes.  In addition, VA has "personal property tax relief" for personal vehicles outline in https://www.dmv.virginia.gov/general/#pptr/summary.asp .  No portion of the VA DMV state registration qualifies as a federal itemized deduction because those fees are not based on the automobile's value, but on its weight.