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.
Can you file taxes this year without having filed last year? Learn more from the tax experts at H&R Block.
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.
Looking for more information about your New York refund? Find out details on how to check your refund status, who to contact, and more from H&R Block.
Is your personal property tax deductible? Learn more from the tax experts at H&R Block.