Kia Tax Season Car Sales in Kansas City Area

The Internal Revenue Service allows you to deduct sales tax of a car purchase by itemizing on Schedule A on Form 1040. You cannot claim this tax deduction unless you elect to itemize. You are allowed to deduct the tax whether you do business with a private party or car dealership.

Disclaimer. Consult an income tax specialist before filing deductions on your federal taxes.

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