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rm2468
New Member

I need a new car because I drive for work. I live in a county that charges personal property tax on the car. Am I better off saying the car is for personal or business?

County give a "discount" on tax if for personal use so would I save more just claiming car as personal or take tax deductions and claim the car is for business use?
4 Replies
Mike9241
Level 15

I need a new car because I drive for work. I live in a county that charges personal property tax on the car. Am I better off saying the car is for personal or business?

really? see a lawyer. 

rjs
Level 15
Level 15

I need a new car because I drive for work. I live in a county that charges personal property tax on the car. Am I better off saying the car is for personal or business?

You are certainly better off saying what you really use the car for. I'm sure that lying about it is illegal.


We can't advise you about your county's personal property tax. You will have to find local assistance for that.


As for your federal income tax return, it's not clear what "drive for work" means. If "work" is a job where you get a W-2, you cannot deduct car expenses on your federal income tax return. But that doesn't change whether you are using it for business according to your county's rules.


If you itemize deductions on your federal income tax return, you might be able to claim an itemized deduction for part or all of the personal property tax.

 

rm2468
New Member

I need a new car because I drive for work. I live in a county that charges personal property tax on the car. Am I better off saying the car is for personal or business?

question space is limited so couldn't put all details into original post.  no one said anything about lying. - I have more than one car but don't want to keep putting all miles on my older car especially when it's not fuel efficient.  So question is for new vehicle -  whichever is most cost effective way re: taxes will determine the use of the car meaning all business and  use my other vehicles for personal  or mix use w/determining percentage of personal vs business use and deduct the work miles from personal and making sure more than half the use is for work which determines how the vehicle will be claimed for tax purposes. for example if personal property tax is $800 for year I pay that and then deduct or will it better to take depreciate/actual cost deductions for the vehicle.  

rm2468
New Member

I need a new car because I drive for work. I live in a county that charges personal property tax on the car. Am I better off saying the car is for personal or business?

questions have limited space - but that's the point .  how I use it will be determining its use and how I write it off on taxes.  I have more than one vehicle so if makes better financial sense to use new car only for driving for work then I will do that OR if mixed use w/majority being business do i pay higher personal property tax and then use depreciation/actual cost for my taxes.  for example i have to pay 1000 vs 800 depending on use for personal property tax.  But then if I say business pay the 1000 in personal property but then I get to deduct 2000 for business then makes sense to keep using one of my other vehicles for personal and use new one for purely business or majority business if that makes sense.

 

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