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rojas-nory
New Member

In 2016 I financed a used vehicle. Are there any sales tax or interest paid I can claim on my taxes?

 
1 Reply
MargaretL
Employee Tax Expert

In 2016 I financed a used vehicle. Are there any sales tax or interest paid I can claim on my taxes?

You may be able to deduct sales tax, registration fees and car taxes if you itemize your deductions.   If you are not itemizing your other deductions, such as mortgage interest, real estate taxes, charitable donations, claiming your car's property tax, sales tax and fees will not make a difference on your tax return. 

Interest paid on a vehicle is not deductible, it is considered a personal expense.

Whether you can deduct the fees depends on how they are based and which state you live in.

The property taxes on your car are deductible in:

  1. Federal Taxes
  2. Deductions Credits
  3. Car and Other Things You Own
  4. Personal Property Taxes

Please see below for details:

You may be able to deduct any tax related portion of the registration fee. To be deductible, the tax portion must be based on the value of the vehicle and be charged on a yearly basis. Registration, administrative, or emission testing fees, or tag or plate fees are not deductible for federal purposes. Often, your registration form will show separate lines for each item, be sure you deduct only the portion listed as for a vehicle tax. You may be able to deduct the other fees on your state return. 

  1. Federal Taxes
  2. Deductions Credits
  3. Car and Other Things You Own
  4. Personal Property Taxes
  5. Car Registration Fees

The sales tax paid on the purchase data entry in located in:

  1. Federal Taxes (Personal Self Employed version)
  2. Deductions and Credits
  3. Scroll down to Estimates and Other Taxes Paid, select Sales Tax
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