2006-11-12 22:35:21 · 3 answers · asked by smokey 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
im assuming youre talking about the sales tax added to each monthly payment. if so, you are NOT allowed to deduct this amount as an itemized deduction on schedule A.
for 2006 you are no longer allowed to deduct sales tax instead of state and local taxes paid.
the only taxes you are allowed to deduct are real estate taxes, state and local taxes paid and foreign tax.
2006-11-12 23:00:41 · answer #1 · answered by tma 6 · 0⤊ 0⤋
If you use the car for business then the business portion can be deducted.
This is a sales tax and if you itemize deductions you can take either the sales tax or the state income tax paid whichever is higher.
2006-11-13 07:02:05 · answer #2 · answered by waggy_33 6 · 0⤊ 1⤋
If u have enough other deductions to allow u to use long form, YES. So can interest paid on loans.
2006-11-13 06:51:33 · answer #3 · answered by Rudy 3 · 0⤊ 1⤋