Business Deductions
- Amortization
- Business Losses and Net Operating Losses
- Car and Truck Expenses
- Day-Care Services
- Depreciating Business Property
- Depreciating Your Car
- Domestic Production Activities Deduction
- Health Insurance Deduction
- Home Office Deduction
- Meal and Entertainment Expenses
- Organizational Costs and Start-up Costs
- Qualified Plan Awards
- Schedule C Expenses
- Section 197 Intangibles
- Should You Sell or Trade in Your Car?
- Start-up Costs
- Travel Expenses
More Tax Topics
- Business Structures
- Hiring Workers
- Retirement
- Top Tax Myths
- Per Diem Rates - IRS Publication 1542 Oct 2011 for Travel Within the Continental U.S (for employers who pay a per diem allowance to employees)
Quick Links
Hot Topics
Need Some Deductions for 2011?
Don't overlook these!
Updated for 2011
Small Business Deductions: Car and Truck Expenses
<< Previous
Personal Property Tax Included in Vehicle Registration Fee
Part of your vehicle's registration fee may include a personal property tax depending on the state in which you live.
Generally, most states base the registration fee for a vehicle on the vehicle's weight, model, year, or horsepower.
However, some states base a portion of the registration fee on the vehicle's value. When the registration fee (or part of the fee) is bases on value, the tax is a considered a personal property tax.
States that assess a personal property tax on vehicles include:
AL, AZ, AR, CA, CO, GA, IN, IO, KY, LA, MI, MN, MS, MO, MT, NE, NV, NH, SC, WA, WY
If you live in one of these states you deduct the business-related portion of the property tax on Schedule C and the nonbusiness portion on Schedule A, (Form 1040) if you itemized your deductions.
For example:
- If the registration fee is $250 and
- $200 of the fee is based on value, and
- and you use you car 80% for business.
You deduct $160 (80% x $200) on Schedule C and $40 ($200 minus $160) on Schedule A (the persona use portion of the fee).
The remaining $50 is a nondeductible personal expense.
Next:
Car Expenses: Sales Tax
Related Links
- Turning Commuting Mileage into Deductible Business Expense
- Audit Proofing Your Car Deduction
- Tracking Business Miles
- Estimates of Car and Truck Expenses
- Mileage Sampling
- Electric Cars
- Annual Depreciation Limits for Electric Cars
- Should You Sell or Trade in Your Vehicle?
- Nontaxable Exchange (trade-in old vehicle)
- Taxable Sale of Car
- Computing Basis of New Vehicle When Trading In Old Vehicle
- Alternative Motor Vehicles or Plug-in Electric Vehicle Conversions
Copyright © 2008-2012 Larry Villano. All rights reserved.