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psmeraldi
New Member

I live in CT and pay personal property tax on my cars - about $500 in 2016 - I own a home and itemize deductions - can I deduct these personal property taxes on my 1040?

 
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1 Reply
MichaelDC
New Member

I live in CT and pay personal property tax on my cars - about $500 in 2016 - I own a home and itemize deductions - can I deduct these personal property taxes on my 1040?

 

Yes. For personal property tax assessed by the local government under Connecticut state law assessed according to State Statutes at 70% of the average retail value.

No. For motor vehicle registration fees imposed by Connecticut and collected by the Connecticut Department of Motor Vehicles

According to the State of Connecticut:

"Q. My income tax preparation software says that automobile registration fees may be deductible on my federal income tax return as “state and local tax” on Schedule A of federal Form 1040.  It says to check with the state.

Answer 

A. You may not deduct the motor vehicle registration imposed by Connecticut and collected by the Connecticut Department of Motor Vehicles. To be deductible under federal income tax law, the registration fee would have to be imposed annually and would have to be assessed in proportion to the value of the car. Since Connecticut's registration fee charged by DMV is bi-annual and is a flat fee, not based on value of the car, it is not deductible."

 

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