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gregg1455
New Member

I bought a used car in California and paid the DMV $1927 in transfer use tax. Is any of that tax deductible

I purchased a used vehicle in California from a private citizen. I paid the DMV $1912 in Transfer Use Tax. How much of that is deductible?

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Phillip1
New Member

I bought a used car in California and paid the DMV $1927 in transfer use tax. Is any of that tax deductible

Use tax is sales tax paid directly by the buyer to the state. This can be counted in determining deductible sales tax.

Sales or use tax from the purchase of a car is a deductible expense, but you must to deduct either your state income taxes from 2016 (any income tax amount paid from your 2015 state tax return and the state and local tax withheld in 2016) or the sales tax from the car plus a standard sales tax deduction allowed by the IRS.

The IRS has a sales tax deduction that can be helpful in determining which deduction is the most beneficial.

IRS Sales Tax Deduction Calculator

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