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Made a Major Purchase of a Vehicle, but It Was Made Out of State

In 2024, I purchased a vehicle in California while living in Texas.  In Deductions and Credits, it gives me the option to Enter Major Purchase.  It states," Enter the following information for any major purchase you made in 2024 while living in Texas when the sales tax rate was 8.25%".  The sales tax rate in California where I bought the vehicle was 7.75%.

 

Can I even claim this vehicle as a major purchase since I bought the vehicle in California while living in Texas? 

 

If so, do I use the California sales tax of 7.75% since that is what I actually paid even though TurboTax references the Texas sales tax rate of 8.25? 

 

Thank you for any assistance.

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1 Reply
MaryK4
Employee Tax Expert

Made a Major Purchase of a Vehicle, but It Was Made Out of State

You will be able to deduct the 7.75 (the amount you actually paid.).  From the Schedule A Instructions:

 

Sales taxes on motor vehicles are deductible as a general sales tax even if the tax rate was different than the general sales tax rate. However, if you paid sales tax on a motor vehicle at a rate higher than the general sales tax, you can deduct only the amount of the tax that you would have paid at the general sales tax rate on that vehicle. Include any state and local general sales taxes paid for a leased motor vehicle.

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