car registration and license fee on turbotax

[vcc001]

I leased a car in 01/2019 and paid vehicle license fee and registration fee (as two separate items in the lease agreement). Then, in 11/2019, I paid the fee for that car's "Vehicle Registration Renewal"

My two questions are:

1) In turboxtax, should the registration fee be the sum of vehicle license fee and registration fee ? 

2) Should I add the "Vehicle Registration Renewal" in the turboxtax as well? I was thinking that although this renewal is for using the car in 2020, but i paid it in 2019. 

Thank you!

[KathrynG3 · Accepted solution]

1)No. These two items are not the same.

2)No. Tax returns are filed on a cash basis, meaning cash expenses paid are deductible and cash received may be taxable in 2019. Something paid for a future year is deductible only in the year paid.

If by license fee you are referring to sales tax, that value is compared to the combined total of state income tax, real estate tax and personal property tax. Only the greater amount is deductible. The registration fee charged annually is deductible annually as part of personal property tax if your state allows it. To find out if your state allows a vehicle registration renewal deduction, click the link: Is my car registration fee deductible? For more on sales tax, see Can I claim the sales tax deduction?

@vcc001