Are CA DMV fees / taxes deductible any more?

If you were allowed to use Personal Property Taxes before 2008, for 2010 you can use line 8.

What did you use for 2008-2009?

Until 2008, there was a line on Sched A that was specifically labeled, "Personal Property Tax." Starting in 2009, this specific line disappeared and was replaced with "Other Taxes." Report personal property taxes there and label as "Personal Property."

But this is strictly for a tax imposed based on the fair market value of personal property (usually only cars and motor vehicles), not for DMV fees in general.

I am not very familiar with California DMV, specifically how the calculate their fees. Keep in mind that you can deduct your car registration ONLY so long as it is a personal property tax based on the value of the vehicle. Some states, Maryland for example, charge fees based on the vehicle's gross weight - these are NOT personal property taxes and are NOT deductible.

You should check with DMV to see how they calculate their fees to make sure you're treating them properly. This is especially important if you've moved from a state like Virginia or Florida, which does charge based on value, to a state that does it differently. Just because it was allowable elsewhere doesn't mean that this is how CA does it.

Good luck, Gene E. Utterback, EA, RFC, ABA

FYI the CA DMV invoice clearly states which fee you can deduct.

BEGIN QUOTE

Your annual vehicle registration payment consists of various fees that apply to your vehicle. Your annual renewal notice and registration card itemize these fees.

The following is a list of the various fees that may be included in your annual vehicle registration payment:

• Registration Fee * Vehicle License Fee (This is the fee that may be an income tax deduction) * Weight Fee * Special Plate Fee * County/District Fees * Owner Responsibility Fee

END QUOTE

For me I once had an old car and the total fee was $50 or so, but the deductible portion was $1.

"Vehicle License Fee

Most vehicles are also assessed a Vehicle License Fee (VLF). The VLF was established by the Legislature in 1935 in lieu of a property tax on vehicles. The formula for VLF assessment established by the Legislature is based upon the purchase price of the vehicle or the value of the vehicle when acquired. The VLF decreases with each renewal for the first 11 years. The DMV returns almost all vehicle license fee revenue to the cities and counties. For more details on how your VLF money is used, contact your local city or county government officials.