Can I deduct taxes on used car purchase that I made in 2019 when I file taxes?
No. You cannot deduct sales tax on a used car. However, you can deduct state and local sales and excise taxes you paid on the purchase of a new:
- Light truck
- Motor home
- Off-road vehicle
The deduction is currently available on new vehicles bought in 2019. If the sales tax on these types of vehicles is higher than the general sales tax rate, you can only deduct sales tax up to the general sales tax rate. You can deduct either of these:
- State and local sales taxes, including those paid on these:
- New vehicle
- Home improvements
- State and local income taxes
However, you can’t deduct both.
If you deduct sales taxes, you can either:
- Save sales receipts and deduct actual sales taxes paid.
- Use the IRS’s sales tax tables to figure the deduction. You can find the tables in the Form 1040 instructions or use the IRS calculator.
Learn how to apply for or renew your Individual Taxpayer Identificaiton Number (ITIN) through a Certified Acceptance Agent with this article from H&R Block.
Learn more about money saying year-end tax tips and get tax answers at H&R Block.
As end-of-year approaches, taxes owed can become a major headache. Plan ahead by considering 529 Tax Deductions and other end-of-year savings options.
Changing jobs can come with tax implications like job search and moving expense deductions. Learn more about these potential benefits at H&R Block.