[smc]

Hi,
During the last year I paid for the following. I would like to know if I can claim for any of the following payments on my tax returns:

1)Motor vehicle License renewal fees
2)Bought a used car and paid for its registration to the Registry of Motor Vehicles.
3)Paid $89000 home(residence) addition costs to a contractor.

Thanks a lot for your help.

[excon]

Hello smc:

1) maybe
2) maybe
3) no

excon

[MukatA]

Hi,
During the last year I paid for the following. I would like to know if I can claim for any of the following payments on my tax returns:

1)Motor vehicle License renewal fees
2)Bought a used car and paid for its registration to the Registry of Motor Vehicles.
3)Paid $89000 home(residence) addition costs to a contractor.
Thanks a lot for your help.

Home improvement cost will increase your cost basis. Keep the receipts; you will need them when you sell the house. Now, you don't get any deduction.

About 1 and 2: A part of your expenses are deductible, but only as itemize deductions. You will itemize only when your itemized deduction are more than your standard deduction.
So if you are going to itemize, then post it here so that I can provide your more info.

[smc]

Thanks for the replies. I am itemizing my deductions as they are more than standard deduction. Thanks once again.

[Mobea]

If you made some energy efficient improvements to your house there is an energy credit up to $500 that you can claim. A credit is better than a deduction. It's like real cash.
Go to Internal Revenue Service and search for home energy credit. It will give you a list of things, and the rebate amount. This credit is only good for 2006 and 2007.

[MukatA]

Thanks for the replies. I am itemizing my deductions as they are more than standard deduction. Thanks once again.

Personal property tax is deductible if it is a state or local tax that is:
*Charged on personal property,
*Based only on the value of the personal property, and
*Charged on a yearly basis, even if it is collected more or less than once a year.

A tax that meets the above requirements can be considered charged on personal property even if it is for the exercise of a privilege. For example, a yearly tax based on value qualifies as a personal property tax even if it is called a registration fee and is for the privilege of registering motor vehicles or using them on the highways.

If the tax is partly based on value and partly based on other criteria, it may qualify in part.

Publication 17: Your Individual Income tax, Chapter 22--Taxes; Personal Property Taxes.