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    Ksaito's Avatar
    Ksaito Posts: 1, Reputation: 1
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    #1

    Jan 24, 2013, 01:14 PM
    Tax return help
    Where do you find the deductible portion of my car's registration fee on the registration paper? I paid about 1000 dollars in tax for the car. Is that the amount? This is in Tennessee.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Jan 24, 2013, 01:51 PM
    You can only deduct the portion of the registartion fee that is based on the value of the car - this portion its considered to be a form of property tax (ad valorem tax) and is deductible. However, in TN the registration fee is based on factors such as the vehicle type and weight, not on the value of the car, and consequently it is not deductible on your federal tax return.

    However, $1000 seems awfully high for a car registration fee - are you sure you're not talking about sales tax you may have paid when you bought the car? Many states make you pay sales tax when you buy a used car in a private sale and first register it. If that's what you're talking about, the receipt you received at DMV when you paid the sales tax is the documentation you need, not the car registration certificate.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #3

    Jan 25, 2013, 08:40 AM
    I agree with ebaines; $1,000 in registration fees is WAY too high. There must be a tax in there siomewhere, either ad valorum or, more likely, a sales tax like ebaines said.

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