Under Deductions and Credits - Car registration Fees vs. PP tax

[6youngblood]

Is the car registration fee the same as Personal Property tax?

[IreneS]

No.  Car registration Fees differ from Personal Property Tax.

• You can only deduct taxes that are based on the value of the car. 

• Typically registration fees are not based on value, but other things. (Type of vehicle, type of license plate, etc.) Those fees are not deductible.  But check with your state taxing authority to be sure.
  

Personal Property Tax

You can deduct taxes you paid on the value of personal property, including a boat, motorcycle, RV, or airplane, but not your home or any real estate you own.

Vehicle Registration

You may be able to deduct certain taxes on your federal return for the fees you pay for your vehicle registration or vehicle license. You'll find this information on your vehicle registration bill.

The total amount of your registration fee is not deductible, just the portion that the state charged you for taxes based on the value of your vehicle. If you need help finding this on your bill, contact your state's Department of Motor Vehicles.

Both items are entered on Schedule A as itemized deductions.   To enter these items TurboTax, please follow these steps:

1. Click on Federal Taxes >  Deductions & Credits.  [In TT Self-Employed:  Personal > Deductions & Credits]
2. Scroll to the Cars and Other Things You Own section and click on the Start/Update box next to Personal Property Taxes [or Car Registration Fees if they are deductible in your state].  [See Screenshot #1, below.)

If you take the standard deduction instead of itemizing you will not receive a benefit from the entry