# Is sales tax on money down for car loan tax deductible?



## Empoy53 (Feb 24, 2018)

I am currently using preparing my tax using turbotax and was wondering if anybody knows?


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## UberTaxPro (Oct 3, 2014)

Yes, you've got two ways to deduct sales tax, schedule c as a business expense (subject to business use % of course) or on Schedule A as an itemized deduction.


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## SEAL Team 5 (Dec 19, 2015)

UberTaxPro said:


> Yes, you've got two ways to deduct sales tax, schedule c as a business expense (subject to business use % of course) or on Schedule A as an itemized deduction.


I have a question about that. If my wife buys a new car, not for business use, and we walk from the dealership with no money down so that tax, registration, dealer doc fees and any other fee are all lumped into the payments can we still deduct the entire sales tax on our Schedule A this year or do we have to break it down in the years of the loan? Sorry about that long run on sentence, but I just wanted you to understand my question.


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## UberTaxPro (Oct 3, 2014)

SEAL Team 5 said:


> I have a question about that. If my wife buys a new car, not for business use, and we walk from the dealership with no money down so that tax, registration, dealer doc fees and any other fee are all lumped into the payments can we still deduct the entire sales tax on our Schedule A this year or do we have to break it down in the years of the loan? Sorry about that long run on sentence, but I just wanted you to understand my question.


You can deduct the entire tax this year. Same as with credit card purchases for business items.


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