Thursday, January 13, 2011

Motor Vehicle Department Fees

Q.  In trying to gather the information for our tax organizers this year, I see we may be able to deduct the fee we pay the Motor Vehicle Department. Do I really need to find the bill? Can't we just take the amount from our checkbook?  JB, Kentucky

A.  You really need to start searching for that bill.  The total amount of the check will include registration fees, special county fees, possibly weight fees, and a myriad of other charges by state and local governments. The only portion you can deduct is the actual tax on the value of your RV.

Tax Tip:  The above is true only if you itemize your deductions on Schedule A. If you take the standard deduction, remember, all taxes together with medical, interest, charity, and miscellaneous items are included.

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