Tax Tip Spotify Podcast and/or WordPress Blog Post and Deductions for Personal Property Taxes

Tax Tip Podcasts & Blog Posts for Realtors, Brokers, Real Estate Professionals
Deductions for Personal Property Taxes

This Tax Tip Spotify Podcast and/or WordPress Blog Post is in response to inquires regarding the deductibility of state and local taxes on personal property.

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

(1) charged on personal property;

(2) ad valorem (that is, based only on the value of the personal property); and

(3) charged on a yearly basis, even if it is collected more or less than once a year.

A tax based on criteria other than value does not qualify as ad valorem. For example, a motor vehicle tax based on weight, model year, and horsepower, or any of these characteristics is not an ad valorem tax. However, a tax that is partly based on value and partly based on other criteria may qualify in part. For example, in the case of a motor vehicle tax of 1 percent of value plus 40 cents per hundredweight, the part of the tax equal to 1 percent of value qualifies as an ad valorem tax and the balance does not qualify.

A tax that meets these 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 the value of a motor vehicle 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.

Please call me at your convenience so that we can discuss the rules for deducting personal property taxes as they apply to your particular situation.

Brenda Fitch Real Estate Professional
Brenda Fitch Real Estate Professional

Please contact the office of Don Fitch Accountancy at (760)567-3110 or Email Don.Fitch@CPA.com if you have any questions or would like additional information.

DON FITCH, CPA
74478 Highway 111 #3
Palm Desert, CA 92260

Toll Free: (877)CPA-Help or (877)272-4357
Cell: (760)567-3110
Fax: (760)836-0968

Email: DonFitchCPA@paylesstax.com
Website: https://www.paylesstax.com

P.S. My firm is based upon referrals. Please feel free to refer my firm to anyone you know that is looking for a new CPA and/or tax preparer. Thank you in advance.

Deductions for Personal Property Taxes
Allow us to Help you complete your Tax Returns from 1913 to present (100+ Years) and for any of the 50 States.

(Updated 05012021-1 320-296)

Published by Don Fitch, CPA

Offers in Compromise, Wage Levy Releases, Installment Agreements, IRS Audits, and much more IRS assistance. Also, allow us to Help you complete your Tax Returns from 1913 to present (100+ Years) and for any of the 50 States.

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