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:
- Federal Taxes
- Deductions Credits
- Car and Other Things You Own
- 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.
- Federal Taxes
- Deductions Credits
- Car and Other Things You Own
- Personal Property Taxes
- Car Registration Fees
The sales tax paid on the purchase data entry
in located in:
- Federal Taxes (Personal
Self Employed version)
- Deductions and Credits
- Scroll
down to Estimates and Other Taxes Paid, select Sales Tax
