Chrysler Income Tax Season Car Deals in Beaumont Area

The Internal Revenue Service permits a deduction on the sales tax for a purchase on Form 1040, Schedule A. If you decide not to itemize, you can’t deduct this sales tax. You are permitted to deduct this sales tax whether you purchase from a private party or an auto dealer.

Disclaimer. Consult a tax adviser prior to claiming deductions on your income tax return.

You are able to deduct the sales tax whether charged on a new or used vehicle. One can only deduct the sales tax that is equal to what you paid when you purchased the vehicle by adding it to the Sales Tax Table for the appropriate state, alongside the vehicle registration fees, if the state bases the fee upon the value of the car or truck. Those expenses are deductible only when itemized. In the specific case of sales tax, it needs to be higher than the state income tax that was paid.