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March 21, 2023
Question

How do deduct excise tax I paid on the sale of property

  • March 21, 2023
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March 21, 2023

Excise taxes levied for you to conduct your business can typically be deducted as a business expense but, generally speaking, you're not allowed to deduct excise taxes on your personal tax return.

Excise taxes levied on personal property (such as vehicles, campers, boats and RVs) can be deducted if two requirements are met:

  1. The excise tax is determined by the property's value, usually a set percentage, and
  2. The excise tax is imposed yearly

If these are actually personal property taxes you paid, they can be entered in TurboTax Online like this:

  1. If you don’t see 2022 TAXES in the left pane, scroll down and select the dropdown to the right of Deductions & Credits and select Let’s get startedPick up where you left off, or Review/Edit
    • Otherwise, in the left pane, select the dropdown to the right of Federal, then select Deductions & Credits 
  2. On the  Your tax breaks page, scroll down and select the Show more dropdown to the right of Cars and Other Things You Own
  3. Select  Start or Revisit to the right of Personal Property Taxes
  4. Answer  Yes on the Did you pay personal property taxes in 2022? page 
  5. Provide all relevant information requested in the interview

If this doesn't address the type of item you're paying tax on, please provide more information -- how the tax is officially labeled, what the property was, and how the amount of the tax was determined.

 

Please see the TurboTax Help article Can I deduct an excise tax? for additional help.