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Author: Crokodil One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120806  
Subject: new car deductions Date: 2/28/2008 9:57 AM
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I have a question.

I bought a new car in November 2007. I know that some registration fees are tax deductible but how to find out it for a new car. All I have is a copy of agreement and I see things like "title tax", "dealer's business license tax", "license fee", "title fee". Do you know is anything deductible.
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Author: DeltaOne81 Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 99127 of 120806
Subject: Re: new car deductions Date: 2/28/2008 10:55 AM
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The tax experts here may be able to give you a more complete answer, but as I understand it, no. The only things that *are* tax deductible are Vehicle annual fees/taxes that are based on the value of the vehicle.

I.e. If the fee is a flat fee for every car, no go. If it varies based on the value of the car, then it should be deductible. A Google search or two may help turn up information about your state.

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Author: edcosoft Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 99130 of 120806
Subject: Re: new car deductions Date: 2/28/2008 11:30 AM
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IF the deduction for State Sales Tax is reinstated (expired 12/31/07) the sales tax on the car will be an "exyra" you can add to the chart amount of tax to deduct, so save your sales receipt which states the amount of inteest you paid.
ed

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Author: EarlyToRise Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 99131 of 120806
Subject: Re: new car deductions Date: 2/28/2008 11:32 AM
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The tax experts here may be able to give you a more complete answer, but as I understand it, no. The only things that *are* tax deductible are Vehicle annual fees/taxes that are based on the value of the vehicle.

I believe your sales tax is deductible if you itemize on Schedule A and choose to total up your state sales tax instead of your state income tax.

ETR

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Author: foolazis Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 99132 of 120806
Subject: Re: new car deductions Date: 2/28/2008 12:38 PM
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I bought a new car in November 2007. I know that some registration fees are tax deductible but how to find out it for a new car. All I have is a copy of agreement and I see things like "title tax", "dealer's business license tax", "license fee", "title fee". Do you know is anything deductible.

Arizona has part of the license listed as a "value tax", which decreases every year as the car depreciates. This is a personal property tax on Schedule A. The other parts of the total amount are flat fees which are not deductible.

foolazis

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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 99133 of 120806
Subject: Re: new car deductions Date: 2/28/2008 12:46 PM
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IF the deduction for State Sales Tax is reinstated (expired 12/31/07) the sales tax on the car will be an "exyra" you can add to the chart amount of tax to deduct, so save your sales receipt which states the amount of inteest you paid.

I'm sure ed meant to end his sentence with "...states the amount of sales tax you paid."

Ira

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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 99134 of 120806
Subject: Re: new car deductions Date: 2/28/2008 1:01 PM
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I know that some registration fees are tax deductible

That's not quite right. Only property taxes are deductible, not the registration fee.

In some states, the annual license plate renewal includes both components: registration fees and property taxes. Only the property tax portion is deductible.

but how to find out it for a new car.

You'll have to get information from your state's motor vehicle department to figure this out. If your license includes a property tax component, they should be able to tell you what it is or how to compute it.

All I have is a copy of agreement and I see things like "title tax", "dealer's business license tax", "license fee", "title fee". Do you know is anything deductible.

The "title tax" might be. I doubt if the "dealer's business license tax" or the "license fee" or the "title fee" are property taxes.

--Peter

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Author: edcosoft Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 99136 of 120806
Subject: Re: new car deductions Date: 2/28/2008 6:53 PM
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ira said I'm sure ed meant to end his sentence with "...states the amount of sales tax you paid."

worse than that, ira, he bought the car in November 2007 when the Sales Tax Deduction on Schedule A was still in force !! Your correction is duly noted and my face is red.

ed

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Author: WoodvilleDale Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 99149 of 120806
Subject: Re: new car deductions Date: 2/29/2008 4:41 PM
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When I got to this deduction in Turbo this year, I was amazed to find the program had a table of which states do base the tax on valuation (and hence are deductible.) What amazed me was the MA was not on the list! I had always thought it was a value-based tax and deducted it. Shush.

-- Dale in Woodville

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