Let’s face it, 2008 was a rough year and there is every indication that 2009 will be just as harsh. We hope that a few of these tips may help you during tax time and down the road.
There are a few potential deductions you may be able to claim for your vehicle that you may be unaware of. Talking with your tax specialist, viewing online tax information and connecting with the IRS (www.IRS.gov) can yield a wealth of information. Here are a few tidbits (some are rather unusual) of information that may help you.
Registration Fee Deduction
If you live in the following states, you can deduct some or all of your vehicle’s registration fees (each state varies and taxes are based on the vehicle’s value each year)*.
Alabama, Arizona, California, Georgia, Indiana, Iowa, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, Nebraska, New Hampshire, South Carolina, Washington and Wyoming.
*You must itemize your deductions on a Schedule A form.
Personal Property Deduction
There are deductions you can take from certain vehicles that you would pay property tax on such as: boats, recreational vehicles and mobile homes. You must own this property and you have to have these itemized deductions on a Schedule A.