New Vehicle in 2004, any tax breaks?

[mark1210]

What is the name of your state? Texas

I closed on a loan for a leased vehicle in December of 2004. A friend of mine thought that the taxes/title are tax deductible items and would benefit me from adding them to my tax return. Is this correct? I am unaware of any tax incentives for a new leased vehicle.

Thanks!

 

[abezon]

People who are itemizing may now deduct their state/local income taxes OR their state/local sales taxes. The IRS has standard tables published for TX -- see Pub 600. You can claim the IRS calculated amount for state & local sales taxes, then add any sales taxes you paid as part of the lease.

If you're claiming employee or business expenses related to the car, you can deduct some or all of the lease payments & operating expenses.