Is There a Federal Income Tax Benefit to Buy a Vehicle?
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.
Can I Deduct a New Car or Truck on State 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.
Why We Offer Income Tax Season Car Deals
It’s Such a Great Time to Lease or Finance a New Kia in the Kansas City Area
If you missed our Kia End of Year or Presidents’ Day Sale Events, don’t dismay, our next big sale is just around the corner. We offer great car sales throughout the US tax season. Visit our inventory or incentives to find the Kansas City Kia deal you’ve been dreaming of. Our helpful Kia specialists are ready to assist you in finding the right vehicle at a competitive price.