personal property taxes

[mblatour]

When it comes to vehicle tabs (registration), does anyone have a simple way to figure out which part of the fee is deductible?

Also, someone has a boat, trailer, snowmobile, etc. that they register; are any part of these fees deductible?

Thanks!

[rosieea]

Only fees based on value are deductible. The issuing authority should provide a breakdown.

[Mike Mac]

Personal Property Taxes in MN

mblatour,

Here in MN, you can not count the first $39.50 as a personal property
tax deduction on Schedule A. Anything over that amount is deductable.

I have not seen a MN M-1 instruction book for quite awhile but the amount
that is not deductable is usually listed in one of the first pages of that book.

Mike Mac

[mblatour]

more information - in Minnesota

Mike Mac: I have a client who has a '99 Mercury Sable, '94 Grand Prix, '91 Ford Pick-up, and '87 Ford Pick-up that were all licensed last year.

Also, 2 motorcycles @ $10 each

1 snowmobile for $48.50

What do you think about these?

If they older vehicles are at the minimum license fee, which is lower than the $39.50 you listed I believe, can they not use anything?

I am looking into the M-1 booklet as well as other places to see what I can find out. Thanks!

[mblatour]

more info.

Pg. 3 of Minnesota M-1 states that you must subtract $35 from the vehicle's registration tax.

[Mike Mac]

That extra $4.50 that I added to come up with $39.50 (rather than the $35.00) is some type of surcharge that the state always adds when you renew your tabs. So if one of your clients looks at their checkbook to see what they paid you'll get an amount like $39.50 or
$103.50 (probably the most common amount paid).

As someone else explained, you can only deduct an ad valorium (value based) type tax so therefore the boat, trailer, snowmobile taxes that are just a flat tax can not be used.

You'd have to ask your client, but of the cars that you listed the 99 Merc might be the $103.50 rate ($103.50-39.50 = $64.00 deduction) but perhaps it was only $39.50.

[mblatour]

looks like only Mercury is usable

I did the math on it and it looks like the only usable one is the Mercury for $64. The other 3 cars would be zero.

Thanks for your input!