Can I deduct sales tax paid on a car purchased in 2012 that was financed?

the car is a 2011
  • where do you get the sales tax from? And can you claim the tax on a used vehicle if financed ?
  • How do I claim taxes paid for a new vehicle that was partially financed?
  • just answer the question where do i enter it for a tn 2012 tax return
  • Do  I claim a car that I bought / financed in 2012?
  • Purchased car in late Dec.  Car papers show taxes etc paid 2012.  The car did not get registered till Jan. so the clerks paperwork shows taxes being paid in 2013.  Which do I use?
  • If the new car invoice shows 2012, I would deduct it in 2012.
  • Purchase a new car in 2012, paid cash.  Can I deduct the sales tax paid?
  • Bill, the question is answered in the original reply on this post.
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It doesn't matter that the car was financed.  To claim sales taxes on a vehicle or boat you need to meet two criteria:

1.  You must itemize deductions, and
2.  Your sales tax deduction, including the sales tax on the vehicle must exceed your state income tax.  

If you claim the standard deduction, you cannot deduct sales taxes..  The legislation that permitted a deduction of sales taxes on a new auto in addition to the standard deduction was only for new vehicles purchased from Feb. 17, 2009, through Dec. 31, 2009.  It was not part of the "Bush Tax Cuts" and, consequently, when those cuts got extended they did not include extending this provision.  See http://www.irs.gov/newsroom/article/0,,id=204519,00.html for the dates.

The deduction for sales tax is under the deductions and credits tab.
  • Therefore, tax on used cars are not part of the credit.
  • The car or boat can be new or used.
  • The link provided above explains purchases in 2009 had to be a new car. I can not find (on the IRS website) an update for 2012 that indicates a credit can be taken for a used car purchase.
  • LET ME MAKE SURE I UNDERSTAND.  I BOUGHT A USED 2012, IN 2012. SO THE SALE TAX I PAID CANNOT BE CLAIMED.  I HAVE TRIED TO FIND THE ANSWER BUT TO NO AVAIL. THANKS.
  • The sales tax can be claimed on a used car, however there may be no tax benefit to doing so - seethe answer above.
  • If you READ bwa's excellent piece you will see that, in addition to the regular deal for sales tax deduction, there was a special deal in 2009 only that applied to only new cars and allowed the new car sales tax PLUS the standard deduction that is long gone.  What remains allows new or used but only added to the sales tax table in lieu of using the income tax  or the standard deduction.
  • I PURCHASED A NEW CAR IN NOVEMBER 2012 AND IT FINANCED, I CAN STILL CLAIM THE THE TAXES?
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I PURCHASED A NEW CAR IN NOVEMBER 2012 AND IT FINANCED, I CAN STILL CLAIM THE THE TAXES?
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    I purchased a new car in Texas. The sales tax was not 8.25; instead it was 6.25 to lower my payments. Can I claim it like this?
    • Your post is confusing as a dealer cannot arbitrarily lower a sales tax rate to make lower payments.  Could you expand on exactly what was done?
    • For cars purchased in Texas the rate is 6.25%. Purchasing other goods it would be 8.25%.
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