Virginia State DMV

[mactoolsix]

The Virginia Dept of motor vehicles list various (non-deductible) registration fees - generally $40 or $45 depending on the vehicle. Is the rest of the registration fee based on the vehicle value and deductible?

Client (Fredericksburg) has a 2014 Lincoln DMV of $423 $45 registration fee. $378 deductible?

Thanks,
Mike

[TAXNJ]

Personal

The Virginia Dept of motor vehicles list various (non-deductible) registration fees - generally $40 or $45 depending on the vehicle. Is the rest of the registration fee based on the vehicle value and deductible?

Client (Fredericksburg) has a 2014 Lincoln DMV of $423 $45 registration fee. $378 deductible?

Thanks,
Mike

If personal, REFERENCE "Personal Property Tax" -Schedule A instructions or TheTaxBook tax 4-9

[Burke]

The Virginia Dept of motor vehicles list various (non-deductible) registration fees - generally $40 or $45 depending on the vehicle. Is the rest of the registration fee based on the vehicle value and deductible?

Client (Fredericksburg) has a 2014 Lincoln DMV of $423 $45 registration fee. $378 deductible?

Thanks,
Mike

DMV fees are not deductible. VA localities impose a Personal Property tax on all vehicles which IS deductible. Their bill also includes a decal fee (usually $20 - $25) which is NOT deductible. Are you sure that what you have is from the DMV? Theirs is usually just a registration form for license plates, generally $45 per year, and is on card stock. The PP tax bills are generally a larger page that actually says vehicle tax on it.

[mactoolsix]

If personal, REFERENCE "Personal Property Tax" -Schedule A instructions or TheTaxBook tax 4-9

I'm not asking "what" is deductible. I'm asking what part of the VA vehicle registration is based on value, and thus a deductible personal property tax?

Mike

[mactoolsix]

DMV fees are not deductible. VA localities impose a Personal Property tax on all vehicles which IS deductible. Their bill also includes a decal fee (usually $20 - $25) which is NOT deductible. Are you sure that what you have is from the DMV? Theirs is usually just a registration form for license plates, generally $45 per year.

Thanks Burke

Client provided a registration form showing $45 and then the figure $243 for vehicle registration.
So, I'm guessing the $45 is non-deductible registration fee which everyone pays (either $40, $45 or $20? or is the $20 decal fee in addition to the $45 non-deductible) then the balance is based on the value of the vehicle and deductible?

Mike

[Burke]

I am assuming he has not given you the actual PP tax bill and is just listing this on a sheet of expenses? In any case, the annual DMV registration fee is not deductible. That is the only fee DMV charges unless he had to pay the fee for uninsured motorists which can be $400+. And the decal fees which are included on the same bill as the personal property taxes are not deductible either. The DMV fee of $45 per car for license plates is paid to the state on a separate bill. The PP tax/decal bills are paid to the locality and are usually on the same bill that the county/city mails out. What you have to determine is whether the $243 includes the decals or not. I make them give me the bill, because they usually always include the decals when the TP just writes down the amount on a sheet of paper. (They are getting the info from their checkbook.) But they can also go online or call the locality and get the exact figure. Sometimes I ask if that is the total they paid and how many cars are involved, then I subtract the decal fee from it. PS: Although the localities stopped issuing the decal to paste on your windshield a few years ago, they still charge you the fee for it. They wanted to save money. And on the ones I am getting this year, I notice it no longer calls it a decal fee but a "license tax." However, it is NOT a tax based on valuation, but a flat fee per car.

[FEDUKE404]

Ad valorem property tax is only issue of merit

Thanks Burke

Client provided a registration form showing $45 and then the figure $243 for vehicle registration.
So, I'm guessing the $45 is non-deductible registration fee which everyone pays (either $40, $45 or $20? or is the $20 decal fee in addition to the $45 non-deductible) then the balance is based on the value of the vehicle and deductible?

Mike

I don't understand the confusion here.

You can only deduct (as an itemized deduction, for personal vehicles) property TAXES and said taxes must be based on the value of the asset. (OK, vehicle sales taxes can lurk but that is a different topic.)

Regardless of what the VA "registration fee" might or might not be based on, it does not sound like a qualifying TAX. Period. More likely there are new (to VA) vehicle fees, similar to what most states now charge upon initial registration of a vehicle in the state OR other annual fees (smaller cost) to maintain a license plate et al.

I have several VA tax clients, and they annually present me with a copy of a property tax bill. (Burke's comments seem to confirm.) I actually have a VA in-progress tax return on my desk at this time. The notice is titled "County of XXX Treasurer's Office" and is marked "2015 personal property tax." It shows the vehicle description, VIN, value, and tax assessed.

Hope this helps.

FE

[TAXNJ]

Yep

I don't understand the confusion here.

You can only deduct (as an itemized deduction, for personal vehicles) property TAXES and said taxes must be based on the value of the asset. (OK, vehicle sales taxes can lurk but that is a different topic.)

Regardless of what the VA "registration fee" might or might not be based on, it does not sound like a qualifying TAX. Period. More likely there are new (to VA) vehicle fees, similar to what most states now charge upon initial registration of a vehicle in the state OR other annual fees (smaller cost) to maintain a license plate et al.

I have several VA tax clients, and they annually present me with a copy of a property tax bill. (Burke's comments seem to confirm.) I actually have a VA in-progress tax return on my desk at this time. The notice is titled "County of XXX Treasurer's Office" and is marked "2015 personal property tax." It shows the vehicle description, VIN, value, and tax assessed.

Hope this helps.

FE

Agree with you and BURKE. Our VA clients present a copy of the same type of County personal property tax bill as they should and it makes life easier.