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OT: KY Motor Vehicle Ad Valorem Tax

This is more of a tax question than a Quicken question. My apologies if it's considered off topic.

As part of the renewal for my KY vehicle registration, I was charged a $25 M.V. registration fee and a $141.49 "Mtr Veh Ad Valorem Tax" based on a percentage of the current value of my car.

The $141.49 was further broken down as follows:

STATE $48.94 COUNTY $18.05 CO SCHOOL $63.62 FD-MIDDLETOWN $10.88

Does anyone know what Quicken category(ies) I should use?

Should I assign everything to Auto:Registration or should I break out the $141.49 as Tax:Property. Or should I do something else?

Any comments, even educated guesses would be appreciated.

TIA,

Jerry

Reply to
Jerry Boyle
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[...]

Ad Valorem (in proportion to the value) are considered deductible personal property taxes under the IRS code. Taxes based on the weight of the vehicle ('road tax' or 'use tax') aren't deductible.

I'd set up a separate subcategory, Taxes:Personal Property, with tax attributes linking it to Schedule A:Personal Property Taxes.

| George Ruch | "Is there life in Clovis after Clovis Man?"

Reply to
George Ruch

As far as Quicken goes, I would split it into two categories: Auto:Plates and Tax:PerProp.

When you get to TurboTax, you should get the opportunity to make sure that the Tax:PerProp gets treated as a deduction.

Reply to
Clark W. Griswold, Jr.

You could also try news://misc.taxes.moderated

Reply to
Mike

Thanks, George.

I think I now understand the Ad Valorem part and I agree that it goes to Schedule A:Personal Property Taxes. My (standard?) Quicken Auto:Registration category was already linked to Schedule A:Personal Property Taxes.

Now I'm confused about the *other* part which is broken down as follows:

M.V. Registration-Clerk $3.00 M.V. Registration-State $22.00

I don't know what these charges are based on but they look more like fixed registration fees than road or use taxes.

Any idea if these are tax related and, if so, where they go?

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Reply to
Jerry Boyle

Thanks for the suggestion. I'll go there if I can't get an answer from our Quicken tax experts.

Thought I'd try here first to see if there was a standard Quicken category I could use.

Reply to
Jerry Boyle

So it looks like the $25 is not tax related and the $141.49 goes to Schedule A:Personal Property Taxes as George suggested.

Anybody disagree?

Reply to
Jerry Boyle

miscellaneous registration fees are generally not tax deductible.

Reply to
JM

[...]

Which isn't completely correct, since some of that registration fee (the costs you detail below) are for administrative costs not related to the value of the vehicle.

Exactly.

You'll need to

1) Remove the Schedule A tax linkage from Auto:Registration, and 2) Set up a split transaction, assigning the personal property tax portion to Taxes:Personal Property Tax and the remainder to Auto:Registration.

| George Ruch | "Is there life in Clovis after Clovis Man?"

Reply to
George Ruch

Rather than mess up historical (and possibly incorrect!) use of Auto:Registration for prior tax years when I lived in anther state, I'm going to leave it alone and add a new category Auto:Registration Fee with no tax linkage, but otherwise do as you suggested.

Thanks again to you and everyone else for your help.

Jerry

Reply to
Jerry Boyle

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