I bought a new car. can i claim the taxes from this as personal property tax

[ashabraner1957]

I purchased the car in February 2013. Under personal property deductions, can I claim the state tax paid on this car?

[bwa · Accepted solution]

Generally, the tax paid on purchase is a sales tax and may be deductible under some circumstances.  You can deduct sales tax on a new or used purchased or leased vehicle or boat but, if you live in a state with a state income tax, it probably isn't to your advantage to do so.  To claim sales taxes on a vehicle or boat you need to meet two criteria.  You must itemize deductions, and your sales tax deduction, including the sales tax on the vehicle must exceed your state income tax.

Realistically, in most states with a state income tax, the state income taxes would be higher than the state sales taxes, even with sales tax on a car added.

If you claim the standard deduction, you cannot deduct sales taxes.

The deduction for sales tax is under the deductions and credits tab.  Go to:
Deductions and Credits

• Estimates and Other Taxes Paid
• Sales Tax.
• Click Update next to Sales Tax.
• Click Continue.
• Select Easy Guide
• Click Edit next to your sales tax rate.
• Click Continue twice and you will then be on the page where you enter your car or other major purchases.

Note:  for an auto, the tax rate doesn't need to be the same as the general tax rate.  For a boat, it does.

A personal property tax is an annual tax based on the car's value.  It might be paid on purchase, or (as in South Carolina) it may be billed annually by your county.

[Rainman12]

Yes - if tax is based on value of car, and at general sales tax rate for initial sale. (Not all States tax thusly) ...

The initial sales tax paid would be deductible only if you deducted State sales taxes instead of income tax withheld on your itemized return (not actually as Personal Property Tax). PPT would be the annual license fee portion based on vehicle value - and not all States have such fees. For info, see http://www.dmv.org/registration-renewal.php 

[JeffG1]

Sales tax on major purchases (such as a car, boat, RV) are deductible for those who itemized their deductions. However, you can only deduct Sales tax OR State and local income taxes - not both. So, you need to determine which is most. 

Additionally - the DMV fees you paid on your car (in excess of what is considered "registration") are also deductible if you itemize your deductions.  

No - the interest you pay on your auto loan is not deductible. Sorry...

[bugman]

You should reword your first sentence. It could get a lot of people in trouble. There's a big IF involved. "DMV fees" is the key term. I'm filing income taxes therefore I can claim the motor vehicle tax AND motor vehicle fee on my federal return, NOT sales tax. Some people are under the impression it's OK to claim the vehicle sales tax when filing an income tax return but this isn't so. I'm in Nebraska & here's the rule in my state:

 http://www.revenue.nebraska.gov/tax/current/2018_indiv_bklt/Itemized_deduct.html

[cvanduin]

Clarification...car is bought at the end of December and the fees paid to the dealership. However, DMV processes the registration in January.  Did the payment to the dealership constitute payment of the fees in the previous calendar year thus making them deductible for that calendar year?

If not, and if the now current year renewal is paid before the end of the year, would both portions be deductible next year?

[JamesG1]

A check is written on December 31 but clears your checking account in January.

Since the check is freely given in payment in December, the expenses can be deducted in December even through the check clears in January.

See here.

See IRS Tax Tip 2014-21 here.  See item (4).

“You can include only the expenses you paid in 2013. If you paid by check, the day you mailed or delivered the check is usually considered the date of payment”.

[Glen Nelson]

I bought a used 2018 Kia in March 2020 and paid $1766 in sales Tax. where do I enter this tax?

[ToddL99]

Enter this deduction in the Sales Tax  interview of Federal > Deductions and Credits > Estimates and Other Taxes Paid.

You have to itemize deductions and also choose to deduct sales taxes over state income taxes.

[jykima]

I bought a car in 2014, paid sales tax. Very late I know, but can I claim a sales tax deduction?

[jykima]

State is Washington, for reference. Yes, I know we don't file state income taxes in Washington. This is in regard to federal.

[VolvoGirl]

You would have to amend y our 2014 return to add it.  But you can only claim a refund for 3 years. back so you are out of luck even if you itemized deductions.    

[jykima]

Thank you!

[mirpc]

I'm still not certain if my question has been addressed.

I leased a new auto in Florida in December 2022. The sales tax is paid monthly for 39 months. Can I claim the total amount which will be paid over the 39 month lease in year 2022 or just the $28.00 monthly tax paid in December. If the latter, how do I get credit for the remaining 38 months @ $28.00/mo.?

I chose to itemize deductions and took the sales tax option.

Thank You

[JosephS1]

No, you cannot claim the entire lease period sales tax payments you will pay.  You may add the monthly payments to the general sales tax amount that pertains to your state.  Per your question, the amount deducible for 2022 would be the general sales tax table amount for your state plus $28.00 for the December lease payment.  If you purchased a large capital item during the year you may also add that amount as long as it it allowable per the regulations.  The link below should be helpful in determining the exact amount of sales tax that can be deducted by you for the year 2022.  Once you access the link, scroll down to page A-4:

Sales Tax Deductible in 2022

@micpc