1999 Tax Help Archives  

Pub. 17, Chapter 24 - Taxes

Personal Property Taxes

This is archived information that pertains only to the 1999 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Download: Form 1040 • 1040 Instructions PDF or HTML
Schedule A & BForm 1040AForm 1040EZTax Tables

Personal property tax is deductible if it is a state or local tax that is:

  1. Charged on personal property,
  2. Based only on the value of the personal property, and
  3. Charged on a yearly basis, even if it is collected more than once a year, or less than once a year.

A tax that meets the above requirements can be considered charged on personal property even if it is for the exercise of a privilege. For example, a yearly tax based on value qualifies as a personal property tax even if it is called a registration fee and is for the privilege of registering motor vehicles or using them on the highways.

Example.
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, since it is based on the value. The remaining $17 ($.50 × 34), based on the weight, is not deductible.

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