ryanc44

As I'm sure most of you that itemize your Federal Income tax deductions know, you can write off a portion of your vehicle license fee. Just wondering if any other California residents have contacted the DMV to find out what portion of the TSX registration was vehicle-related (the only part you can write off). I can call the DMV tomorrow, but I was hoping to get my taxes out of the way today...

CDR

The California registration fee has three parts for a car: the Registration Fee, County/District Fee, and Vehicle License Fee. The VLF part is based on the value of the car (0.65%) and is completely deductible for both the IRS and CA FTB. The other parts are not for individuals. On my TSX registration it shows the total fee paid but not the breakdown; on my renewal of an older car is shows the VLF portion as well.

In 2003, the Registration fee was $30, the County/District fee for me in Santa Clara County was $8, so the VLF = total registration fees - $38.

I don't know what the LA county/district fee is, probably the same $8. A previous registration may let you figure that out. The Registration fee went up to $40 for 2004.

ryanc44

Thanks for the info.

Yeah, same here- my TSX reg just shows the total paid. I remember that dmw renewal paperwork showed the breakdown, but I can't find any of them for my old CL...

For some reason I remember being able to write off about $60-$70 for my CL (can't find last year's tax returns either), but I'm not going to try to guestimate- guess I'll be on hold with the DMV tomorrow morning...

ryanc44

For anyone living in Los Angeles County that doesn't want to wait on hold with the DMV for days, I just found out that you can write off $176 of your fee for the TSX...

CDR

I know you're trying to be helpful ... The deductible amount is NOT $176 for everyone, since the VLF is based on the purchase price including dealer options and the doc fee (0.65% at the moment). People pay different amounts for their car (e.g. navi/non-navi, etc).

Perhaps you could post what the difference is between your registration total and the $176, which will be the non-deductible portion that others in LA County can use.

For me in Santa Clara County, the non-deductible portion is $38 in 2003 and the rest of the fee is the deductible VLF.

ryanc44

Oops! Good point- it didn't even cross my mind about the VLF being based on the purchase price (including options and all that.) I'll check my fee tonight and calculate the NON-deductible part for LA county folks...

Curious though (deviating from the subject), why would the doc fee be a variable in the vlf?

CDR

Good question! The doc fee is purely a dealer charge (gross revenue, not a governmental fee at all) and the DMV considers it to be part of the price of the car. You (we) also paid sales tax on that doc fee! Fortunately it's limited by CA state law to $45 maximum.

ryanc44

I guess they'll get you any way they can...

Well, I checked my title and I paid $216 for my registration, minus what the DMV told me I can write off (which was $176), so I guess the non-deductible amount is $40...

I find it a bit odd that the VLF would be based on the price you pay for the car, instead of a fixed value like MSRP or something. So basically the guy that paid MSRP and got a few of the high dollar accessories at the time of purchase will have a higher VLF to pay every year than the guy that negotiated lower than MSRP with no accessories? Hmm...