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protege98
New Member

Purchased new vehicle in 2016, paid for plates/tags/sales tax. Does this count as personal property tax and/or registration fees?

It states that sales tax is deductible if it is more than your local and state tax deduction.  Mine was not, however, can I deduct as personal property tax or registration fees?
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ChrisJ
New Member

Purchased new vehicle in 2016, paid for plates/tags/sales tax. Does this count as personal property tax and/or registration fees?

It depends on which state you're in. If you paid registration fees to a state that charges tax based on the vehicle's value, you can claim the deductible value-based (sometimes, ad valorem) portion of your registration fee. You must itemize your deductions using federal Schedule A. There is no way to claim this amount on the state interview.

Below is a list of states that charge a tax based on the vehicle’s value:

  • Alabama
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Georgia
  • Iowa
  • Indiana
  • Kentucky
  • Louisiana
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • South Carolina
  • Washington
  • Wyoming

If your state isn't on the list, you may still be able to deduct taxes you paid on the value of personal property. To deduct your personal property tax:

  • You have to itemize your deductions to deduct personal property taxes.
  • You can only deduct personal property taxes you paid on property that you own.
  • You cannot deduct penalties or late payment fees that appeared on your tax bill.

To enter the property tax into TurboTax:

  1. Go to Federal Taxes, then Deductions & Credits 
  2. Find Cars and Other Things You Own - Start Personal Property Taxes
  3. TurboTax asks: 'Did you pay a personal property tax bill?' Answer yes

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