Personal Property Taxes

Personal property taxes may be deducted on your federal income tax return if you itemize deductions.  Deductible personal property taxes are based on the value of personal property, such as boats, cars, or other tangible personal property.  The personal property tax rate must be charged to you on a yearly basis, even if collected more than once a year or less than once a year.

Taxes and fees you cannot deduct on Schedule A include federal income taxes, social security taxes, stamp taxes, transfer taxes on  sales of property, homeowner association fees, estate and inheritance taxes, and service charges for trash collection, sewer, or water.
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Personal property taxes are usually greatest on expensive automobiles, since they are a percentage of cost.