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The vehicle sales tax is a tax imposed by city and state governments on the purchase of the car.
The rate can vary from state to state and in some instances from county to county.
Usually the sales tax has to be paid before you could receive title and registration to your vehicle.
Sometimes, you’ve got the option to deduct the sales tax of your vehicle from your taxes.
Heres what you better know.
Who Can Claim a Vehicle Sales Tax Deduction?
Both individuals and a business can claim a vehicle sales tax deduction, but they must meet eligibility requirements.
For Individuals
For Businesses
What Types of Vehicles Qualify?
According to the IRS, only certain types of vehicles qualify for a sales tax deduction.
you’re able to claim your vehicle sales tax deduction in the year the vehicle was purchased.
If you purchased the vehicle in 2023, you are eligible for the deduction on your 2023 tax return.
What are Common Mistakes to Avoid When Claiming Deductions?
When claiming avehicle sales taxdeduction, see to it you avoid the following mistakes.
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