Leased a car in July '06 and my tax is billed monthly. How do I claim the tax on my taxes?

Answer 1

You dont claim the tax on your taxes. The tax you pay is "sales tax" and sales taxes are only deductible as a Schedule A deduction, but only if you itemize.

You can deduct a portion of your total lease payment as a business deduction, but only if the lease is used for business purposes.

Answer 2

If you're talking about property taxes, you should receive a statement from the leasing company sowing the taxes you paid since you purchased the car. I will say, however, that just because you are "paying" them monthly doesn't mean that the leasing company is paying them monthly. Property taxes are usually paid semi- or annually. You may have been paying them for a tax bill that was due in January 2007, or in July 2007. In this case, even though you have paid the money to the lease company, it is for tax year 2007, not 2006.

Answer 3

If you itemize your deductions and claim the state sales tax deduction instead of the state income tax deduction, you can add the lease payment sales tax to the tax table amount for your state.

If you don't itemize or do and take the state income tax deduction you can't deduct that sales tax.

Answer 4

JUST ADD IT UP AND MAKE A STATEMENT ON YOUR TAX FORM. YOU SHOULD HAVE THE SEVEN MONTHLY STATEMENTS FOR YOUR BACKUP. SOME LEASING COMPANIES GIVE YOU A YEAR END STATEMENT. IT SHOULDN'T BE HARD.