If I bought a used vehicle this year. Are there any used car tax deductions available?
There are not used car tax deductions available. If you choose to take the standard deduction you cannot deduct the tax. However, if you itemize your return you may be able to deduct the sales tax you paid on the vehicle. In order to do so you can only deduct state and local sales taxes instead of income taxes on Form 1040, Schedule A.
You can deduct the tax you pay on personal property — like cars and boats. Personal property tax — also called an excise tax — is based on the value of the item.
To deduct property taxes, all of these must apply:
The tax is imposed on personal property.
The tax must be based on the value of the personal property
The tax is imposed on an annual basis, even if collected more or less than once per year.
Because you will be excluded from taking the standard deduction if you choose to deduct the tax you paid on personal property you should calculate both methods – the standard deduction or itemization – to determine which is best for you.
Not sure if you need to file taxes if you’re being claimed as a dependent on someone else’s returns? Let H&R Block help you determine what you should do.
Can you be claimed as a qualifying child or relative if you are 24 years old and live with your parents who primarily support you? Get tax answers fro
Wondering how you can change your filing status from joint last year to separate this year? It’s not too hard, but it might not be the best idea.
How should you file back taxes for last year, as well as taxes for this year? Learn more from the tax experts at H&R Block.