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I bought a new car and sold an old car in 2016. I live in VA and paid VA sales tax on new car, but bought new car and sold old car in TN. What do I do?

 
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I bought a new car and sold an old car in 2016. I live in VA and paid VA sales tax on new car, but bought new car and sold old car in TN. What do I do?

The answer is possibly if you are itemizing deductions.  The sales tax on the motor vehicle is added to the "normal" sales tax that the IRS allows as a default should you opt to deduct sales taxes instead of income taxes.  In addition, VA has "personal property tax relief" for personal vehicles outline in https://www.dmv.virginia.gov/general/#pptr/summary.asp .  No portion of the VA DMV state registration qualifies as a federal itemized deduction because those fees are not based on the automobile's value, but on its weight.



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I bought a new car and sold an old car in 2016. I live in VA and paid VA sales tax on new car, but bought new car and sold old car in TN. What do I do?

The answer is possibly if you are itemizing deductions.  The sales tax on the motor vehicle is added to the "normal" sales tax that the IRS allows as a default should you opt to deduct sales taxes instead of income taxes.  In addition, VA has "personal property tax relief" for personal vehicles outline in https://www.dmv.virginia.gov/general/#pptr/summary.asp .  No portion of the VA DMV state registration qualifies as a federal itemized deduction because those fees are not based on the automobile's value, but on its weight.



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