The purchase of a personal vehicle is not deductible on a federal tax return, if not used in a business.
You can deduct the sales taxes paid on the vehicle as an itemized deduction on Schedule A. Also, any personal property taxes you paid based on the value of the vehicle can be deducted as an itemized deduction on Schedule A.
To enter your sales taxes
Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credits
Click on I'll choose what I work on (if shown)
Scroll down to Estimates and Other Taxes Paid
On Sales Taxes, click the start or update button
Or enter sales tax in the Search box located in the upper right of the program screen. Click on Jump to sales tax
To enter Car registration fees -
Click on Federal Taxes (Personal using Home & Business)
Click on Deductions and Credits
Click on I'll choose what I work on (if shown)
Scroll down to Cars and Other Things You Own
On Car Registration Fees, click on the start or update button
Or enter car tags in the Search box located in the upper right of the program screen. Click on Jump to car tags
