In some states, taxes are imposed on the value of certain personal property that you own, such as cars, trucks, or investments. You can deduct these taxes on Line 8 of Schedule A, but only to the extent that they are based on the value of the item and are charged annually (even if payments are made more or less often than once a year).
 |
Example
Your state charges an annual motor vehicle registration tax based on 1% of the car's value plus 50 cents per hundred pounds. You paid $167 based on the car's value ($15,000) and its weight. You can deduct only the $150 that reflects 1% of the car's value.
|
|
