Personal property taxes are deductible if you itemize deductions. You pay personal property taxes on cars and trucks, motorcycles, airplanes and boats. Usually they each have a personal property tax portion and a license portion (but not always.) You need to check your bill to see how much is deductible.
If you deduct auto expenses on schedule C and take the standard mileage deduction, you can also take the business portion of personal property tax on the car or truck as an addition deduction. This will help reduce self-employment taxes and may allow you to get a few more itemized deductions that are reduced by a percentage of AGI.
If you have any questions, please call me at 818-317-6035 or email me at bstonercpa@sbcglobal.net and I will try to answer them.
Monday I wiil talk about mortgage interest and points.
You can count on us to count for you!