Solved: New vehicle sales tax was itemized into a 5 yr car loan - Can I deduct full amount?
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New vehicle sales tax was itemized into a 5 yr car loan - Can I deduct full amount?

 
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New vehicle sales tax was itemized into a 5 yr car loan - Can I deduct full amount?

Yes, you can deduct the sales tax in full in the year of purchase even if financed.

To enter your sales taxes and major purchases in TurboTax Online or Desktop, please follow these steps:

  1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Deductions & Credits”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Estimates and Other Taxes Paid ”
  5. Choose "show more", then Sales Tax (start/update/revisit)
  6. Choose - continue to sales tax and choose "Easy Guide"
  7. If your state sales tax information is already entered you will need to edit it to enter your major purchases information.
  8. On the screen that says Major Purchase - select "yes"
  9. Enter your car information and use tax here on the next screen (see attached screenshot)


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Highlighted
Level 7

New vehicle sales tax was itemized into a 5 yr car loan - Can I deduct full amount?

Yes, you can deduct the sales tax in full in the year of purchase even if financed.

To enter your sales taxes and major purchases in TurboTax Online or Desktop, please follow these steps:

  1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Deductions & Credits”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Estimates and Other Taxes Paid ”
  5. Choose "show more", then Sales Tax (start/update/revisit)
  6. Choose - continue to sales tax and choose "Easy Guide"
  7. If your state sales tax information is already entered you will need to edit it to enter your major purchases information.
  8. On the screen that says Major Purchase - select "yes"
  9. Enter your car information and use tax here on the next screen (see attached screenshot)


View solution in original post

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