can i deduct my car bought in 06 on taxes?

Question

car is not hybrid state of maryland but read in money magazine can deduct car, boat or motorcyle

Answer 1

If you itemize, you have a choice of taking a deduction for state and local taxes, or for sales tax. If you take sales tax, there's a table of allowable amounts depending on your income and family size - you can add sales tax paid on the purchase of a car, boat or airplane to the table.

Since MD has a state income tax, you might find that your state and local taxes add up to more than sales tax, in which case you'd use the state & local and would not get the deduction for sales tax on the car. But if the sales tax is more, then yes, you can take it, but only if you itemize.

Read the article again more closely. I'm sure it didn't say you could deduct your car, just the tax, unless they were talking about a car bought for use in a business.

Answer 2

If you are itemizing your deductions on Schedule A rather than taking the standard deduction, you might be able to claim the sales tax paid on the car that you purchased, This is reported on line 5 of the Sch A.

You have the choice of deducting either the State and Local Sales tax or the State and local income tax
Publication 600

Answer 3

You may qualify for a deduction for business use. If your only business use is commuting to work there is no deduction. Same for the motorcycle.

Now, it might get a bit different for the boat. If it has full living facilities it MIGHT qualify as a second home and the interest on any purchase loan MIGHT be deductible.

Any personal property taxes on the car, boat or motorcycle that are based on the VALUE of the vehicle are deductible as itemized deductions on Schedule A.

Answer 4

no yet i'm incredibly beneficial you are able to deduct the intrest out of your very own loan money. you additionally can record an amend sort for 2006 and get some money back in spite of the undeniable fact that it is going to take a pair months.