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RD
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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Can you deduct personal property taxes on a ...

Resolved Question:

Can you deduct personal property taxes on a vehicle purchased?
Submitted: 11 years ago.
Category: Tax
Expert:  RD replied 11 years ago.
It has to be a personal property tax, not an excise tax, in order to deduct it. Deductible personal property taxes are only those based on the value of personal property such as a boat or car. The tax must be charged to you on a yearly basis, even if it is collected more than once a year or less than once a year. To be deductible, the tax must be charged to you and must have been paid during your tax year.

Let me know if you have any question.
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Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases.
Customer: replied 11 years ago.
Reply to Renu V's Post: Thank you. However, in less legal terms, I bought a 2006 Charger in July of 2005. I have already submitted my taxes for this year. I need to amend them to include this deduction on the taxes I paid on my car. I also need to get clarification on deductions for hurricane damage that was not filed through my insurance nor FEMA. My deductible was very high and I lost several trees and structures, I have pictures of before and after and during the storms. What is the best way to file the amendment and can I deduct the taxes I paid on the vehicle?
Expert:  RD replied 11 years ago.
You can amend your tax return by filing FOrm 1040X.

For hurrican damage, you can claim casualty loss deduction. The casualty loss deduction is measured in terms of the economic decline in the value of the property, as a result of the casualty event, with your adjusted cost basis as a maximum deduction ceiling: that is, the fair market value of the property immediately before the casualty less the fair market value of the property immediately after the casualty reduced for any insurance or other reimbursements, but no more than its your adjusted cost basis. You must then reduce the loss by $100 and also reduce the total of your casualty losses by 10 percent of your adjusted gross income for the tax year in which the loss occurred. Only the excess over these $100 and 10 percent limits is deductible.

Taxes on vehicle:
If you are referring to sales tax paid on purchase of vehicle, than you can add the sales tax to the sales tax deduction that you have calculated from the IRS tables and claim it on Sch A.

If the taxes are personal property taxes, than you might want to check if the taxes are based on the value of the vehicle and imposed by the State/local Govt and are not the annual tag/license fees ......

Let me know if you have any question.
[email protected]

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases.


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