Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 3, 2019 10:24:38 AM

In 2015 I purchased a new vehicle in Iowa. I was charged a one time fee to register the vehicle. Is this one time fee tax deductible on my federal taxes?

0 1 1613
1 Replies
Expert Alumni
Jun 3, 2019 10:24:41 AM

The one-time registration fee is considered a sales tax, and you can add it to your sales tax table amount. TurboTax will select which tax is higher: your sales tax or your state income tax to compute your deduction.

See this link:http://elists.idrf.state.ia.us/scripts/wa.exe?A2=IDRFINCTAXPROF;1ac55641.0910

"The Internal Revenue Service (IRS) has determined that the Iowa one-time registration fee qualifies for the New Motor Vehicle Taxes Deduction taken on federal Schedule A, line 7 or as indicated on federal form 1040, line 40b.  The Iowa one-time registration fee (formerly called motor vehicle use tax) is imposed at the rate of 5 percent on the purchase price of registered vehicles."