# Is auto sales tax a common business deduction?



## CaptainToo (Dec 5, 2017)

So I am considering buying a replacement vehicle and wonder if the Massachusetts sales tax of $6.25% would be deductible as a common business expense in the year if purchase. I plan to use the standard mileage deduction for my other driving expenses, just not sure if sales tax can be a separate deduction. Anyone know?


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## UberBastid (Oct 1, 2016)

CaptainToo said:


> So I am considering buying a replacement vehicle and wonder if the Massachusetts sales tax of $6.25% would be deductible as a common business expense in the year if purchase. I plan to use the standard mileage deduction for my other driving expenses, just not sure if sales tax can be a separate deduction. Anyone know?


Tax laws have changed recently -- it was in all the news.
Check with your tax professional.


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## Older Chauffeur (Oct 16, 2014)

^^^^ This. It looks like the personal deduction for state property, sales and income taxes will be capped at $10,000. I don't know if it will be different for a business like ridesharing, but you're supposed to be able to deduct 20% as a small business operator, so the sales tax deduction issue may be moot. Add that to the mileage and a lot of drivers are going to be showing little or no profit.

Disclosure: I'm not a tax professional.


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## UberTaxPro (Oct 3, 2014)

CaptainToo said:


> So I am considering buying a replacement vehicle and wonder if the Massachusetts sales tax of $6.25% would be deductible as a common business expense in the year if purchase. I plan to use the standard mileage deduction for my other driving expenses, just not sure if sales tax can be a separate deduction. Anyone know?


Not if your using SMR for your vehicle deduction.


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