We live in Delaware. There is 4.25% on purchase price of a car. Is this the personal property tax portion of the registration fee?

[LLL2010]

We live in Delaware, and we bought a car in 2018. When we go to DMV, other than the $80 registration fee, we also paid a documentation fee of $1147, which is 4.25% of the purchase price for the car. Is this $1147 considered to be the personal property Tax portion of the registration fee even if it is labeled as documentation fee? I am asking this because when I am doing the expenses for my rental property, for this new car, it asks for the personal property Tax portion of the registration fee

[Critter · Accepted solution]

There is no personal property tax in Delaware.  What you are paying is akin to a sales tax or impact fee in other states which is not deductible. 

[Critter]

https://www.autobytel.com/auto-news/buying-a-new-car-in-delaware-107446/

[LLL2010]

Thanks a lot! --Li

[LLL2010]

When I answer the interview for Vehicle used, it has two questions regarding the car registration

1) Registration/License Fees (It is asked if you using Actual Car Expenses instead of Standard Mileage for Auto Expenses)

Turbo Tax hints: 

"If you use the actual expense method instead of the standard mileage method for deducting your vehicle expenses, you may deduct the business portion of your registration and license fees.

Don't include the personal property tax portion of your registration and license fees here. Enter them later on the screen titled Other Vehicle Expenses."

2) Property Tax (including the Property Tax portion of registration)

The following is what is charged when I registered my car in 2018. Thanks to your help, and I understand to answer (2) I can not put $1147 (which is $1227 - $80) as the property tax portion for the Car registration.

Now, to answer (1), can I put $1227 as my car registration fees for 2018? If not, what should I put for car registration fees? 

The following is the DE MDV registration charges for the car we bought in 2018:
USED TITLE DOCUMENTATION FEE $1,092
USED TITLE LIEN FEE $20
PLEASURE REGISTRATION - 24 MOS $80
TITLE FEES - USED $35
Total Reg No 169664:  $1,227

[Critter]

The only registration fee you paid is the $80 ... the rest of the costs are added to the basis of the auto for depreciation.

[LLL2010]

That sounds reasonable! Thank you so much! --Li

[LLL2010]

I usually use the standard mileage option for doing the auto expense. Does that mean the registration fee and the other fees I paid this year for purchasing a car will not be reflected in any deduction for me this year unless I am using the actual expenses method?

(Because for standard Mileage Method, we do not use the registration fee, and we do not use car depreciation)