The IRS Deductions Blog

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Question: Tax deduction for automobile purchase tax paid?

I live in Michigan, purchased a used car from a private party and paid the tax on it at the secretary of state. Will I get a paper ion the mail for this for my taxes?

Answer: No, you already got a receipt when you paid the tax.

You can either deduct state income taxes OR state sales taxes paid if you itemize your deductions. You may take whichever works out best for you.

There’s a sales tax rate table that you must use but you can add the sales tax for major purchases such as a motor vehicle.

If you don’t itemize, you don’t get any deduction at all for that.

Items on Amazon Right Now for Tax Deduction Automobile Purchase:

Offutt volunteers ready for tax season

It’s the start of a new year. For many Americans that means putting away holiday decorations, making resolutions and returning to work. For most Americans, it also means it’s time to gather necessary forms and receipts for the Internal Revenue Service.