New car tax break?

[fizzcrank13]

i purchased a new vehicle in 2016 and i was wondering how i could use that as a tax break

[PaulaM · Accepted solution]

Some possible tax deductions are available if you are itemizing your deductions:

Registration fee tax deduction: How the fee is calculated varies from state to state, so always check with your state's DMV website to determine how they calculate their tax. The total amount of your registration fee is not deductible, just the portion that the state charged you for taxes based on the value of your vehicle. To navigate to the section:

•  In your open return, select My Account
• Tools
• Topic Search
• Type 'car registration fees' in the box, then select GO

Sales Tax deduction: You have the option of claiming either general state/local sales taxes or state/local income tax. In states that have a state income tax, it is generally more advantages to take the income tax deduction. Because you had a big purchase, you might want to figure it both ways. TurboTax will take the bigger deduction for you.

• In your open return, select My Account
• Tools
• Topic Search
• Type 'sales tax' in the box, then select GO