Vehicle Tax Deduction

[mrbill]

Writing from Massachusetts (Taxachusetts ?). Here's the scenario. New car purchased for $20K. 5% State Sales Tax paid at purchase. (Eff. 8/1/09 rate will be 6.25%). Following that the City will impose an Excise Tax of approx. $700., perhaps 4-6 months later. Can I deduct both taxes as an above the line deduction ?
My read is that only the Sales Tax is an above the line deduction, and the Excise tax remains as a Schedule A deduction.
Agree ? Red Sox # 1.......

[BHoffman]

I believe excise taxes are also available to take as an above-the-line deduction:

http://www.kiplinger.com/magazine/archives/2009/05/new-car-tax-write-off.html

http://www.irs.gov/newsroom/article/0,,id=205863,00.html

[solomon]

See draft form of 1040 Schedule L.

[Kram BergGold]

Don't think so

The way I read the law if a state does not ahve a sales tax but has a tax by a different name that is based on the value of the car in the year of purchase then you can dedcut it. As Ma has a sales tax that is what you get to deduct above the line.