are driver's license fees tax deductible
Florida Vehicle Registration Fees. Florida charges different fees based upon the type of vehicle you're registering, its weight, the license plates you choose, and whether or not you will be registering the vehicle for 1 year or 2 years. 1  Initial vehicle registration fee: $225. 2  This is a one-time fee for vehicles that have never had a FL registration. Fees and charges that are not expenses of your trade or business or of producing income, such as fees for driver's licenses, car inspections, parking, or charges for water bills (see Taxes and Fees You Cannot Deduct). You can't deduct the fee for a driver's license, nor can you deduct any penalties or fines for not having an up-to-date registration, or for paying the registration late. The IRS places car-registration fees in the category of a personal property tax, which is deductible under some conditions. You can deduct the fee as along as it is figured as a percentage of your car's value. The higher the value, in these cases, the higher the registration cost, and the more valuable the deduction. The state of Florida may charge sales tax, use tax, and local discretionary taxes on your vehicle when you register it for the first time in Florida. Whether or not you pay the taxes depends on how long you have owned your vehicle. Your state charges a yearly motor vehicle registration tax of 1% of value plus 50 cents per hundredweight. You paid $32 based on the value ($1,500) and weight (3,400 lbs.) of your car. You can deduct $15 (1% × $1,500) as a personal property tax because it is based on the value. You will be required to title your car or truck in the state of Florida at the same time as you register it. You can title the vehicle without registering it, but it will be illegal to drive the vehicle if it is not registered. Itemizing. In order to deduct any taxes or fees, including an auto registration fee, you need to itemize deductions. That means listing the deductions individually on Schedule A, Line 7, and then carrying the total over to your Form 1040. You can't take the standard deduction and then add registration fees. You can deduct only the real estate tax that the third party actually paid to the taxing authority. If the third party does not notify you of the amount of real estate tax that was paid for you, contact the third party or the taxing authority to find the proper amount to show on your return. If you're using the car for business, you take the deduction on Schedule C instead of Schedule A. Schedule C allows you to deduct any and all ordinary and necessary expenses of operating the vehicle in order to do your job or run your company.
No