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New Member
posted Jun 6, 2019 4:58:45 AM

I made a down payment when the car was purchased. Can I deduct that?

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1 Replies
New Member
Jun 6, 2019 4:58:47 AM

No, a down payment for purchasing a car isn't deductible. However, some other deductions related to the car that might be include:

  1. Registration fees if based on the value of the vehicle (the software lists the states that qualify - click more info links on the entry screen), under the itemized deduction
  2. If you paid sales tax on the vehicle, you can check if it would be beneficial for the itemized deductions 
  3. If you use the vehicle for business driving, then you can take a deduction for the mileage you drive

All of the itemized deductions are listed under federal taxes >> deductions & credits. Business deductions are entered within your self-employed work.