Are vehicle personal property taxes deductible in Virginia?

Forum|Forum|6 years ago
June 7, 2019
2 replies
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I live in Virginia and receive an annual personal property tax bill for my vehicle based on its value (about $900 per year). However, on the TurboTax list, it states that these fees are not deductible in Virginia. Why are these not deductible expenses?

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Best answer by Texas Roger

You may be confusing vehicle registration fees and property taxes. Vehicle registration fees are not deductible in Virginia on your federal tax return but personal property taxes based on the value of the vehicle should be.

Texas RogerAnswer

Employee

shervdAuthor

Thanks for your response. I understand the difference between reg and PPT but Turbotax makes it confusing because there is no section to enter personal property taxes on vehicles, only for planes and boats. In the vehicle registration section it says "enter the deductible portion of your vehicle registration fees".... Is this were I enter the personal property tax fee on my car? Another confusing factor is that in the Turbotax help section, my state (VA) is not listed as one that charges taxes based on vehicle value. Which is absolutely not true! Thanks again.

kballvt

I live in Montgomery County, Virginia. I called the County Treasurer. They told me that personal property taxes on vehicles are assessed by value, and that they use NADA tables. My tax bill from the county lists 4 different "Assessed Values" for my 4 vehicles. They match the NADA tables. The amount due is different as well. The assessed value goes down every year. The weight of my vehicles does not. There is even a high mileage allowance that decreases the assessed value. Clearly property taxes (at least in Montgomery County) are based on vehicle value, and should be deductible in federal tax returns. TurboTax is wrong. TaxSlayer seems to allow this deduction.

Texas Roger

Employee

The distinction in the answer above is between vehicle registration fees and personal property taxes. TurboTax only addresses vehicle registration fees not personal property taxes for vehicles.