I purchased a new car in 2020, is the taxes that I paid on it deductible?

[xmasbaby0]

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2020 by going to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax.  You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your new vehicle. 

Sales tax is an itemized deduction.  If your state has a state income tax, you have to choose between using the deduction for your state tax paid OR the sales tax deduction, whichever is higher.  The TT process will suggest one or the other as you prepare your return.

“Major purchases” that you can enter for the sales tax deduction include:

Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles

Aircraft or boats

Mobile homes

Manufactured housing

Building materials for major home improvements

You cannot deduct: furniture, jewelry, home electronics such as TV’s or computers

https://ttlc.intuit.com/questions/1901222-which-deduction-should-i-choose-sales-tax-or-income-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

https://ttlc.intuit.com/questions/3148443-how-do-you-define-major-purchase-or-major-item-for-the-sal...

https://ttlc.intuit.com/questions/1900791-how-do-i-find-my-local-sales-tax

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[Opus 17]

First, you can deduct the sales tax if you are in a state where you deduct sales taxes instead of state income taxes.  The IRS has a general method for deducting the sales tax where you don’t have to keep track of all your tax for the year. The IRS assigns you an allowable sales tax deduction based on your local tax rate and your income. You can add the sales tax you paid for a vehicle to that standard amount. However, if you would rather deduct your state income taxes because they are larger than your sales tax, you can’t include the vehicle sales tax.

Second, in some states, the vehicle registration fee includes a personal property tax based on the value of the vehicle. This personal property tax amount deductible whether you deduct sales tax or income tax.  There is a separate question for personal property taxes and vehicle registration fees.  However, the entire vehicle registration fee is usually not deductible, only the portion of the fee that is based on the value of the vehicle. Other fees, such as a general registration fee, license plate fee, or inspection, are not deductible.