Federal Tax Question - CA

LLeopold wrote:
As a long time RVer in California, and having taken the H&R Block Tax Preparers course a few years ago (better than staying at a Holiday Inn Express!) and completing the course with a 96% (meaning that 4% of my answers would be wrong as compared to a study that was done that showed the IRS hot line folks got approximately 38% of the answers were wrong as compared to the publications - Source: http://www.gao.gov/products/GGD-90-36), applied and received a tax preparer ID, and I'm a beta-tester for TurboTax®, I think I am in a position to discuss tax ramifications and using TurboTax®. I'll even cite the federal and state tax publications to back up my response. I am, however *not* a certified public accountant, so take my credentials accordingly.

Here's my response.

You may deduct the California Vehicle License Fee portion of your registration as you would on your tow or other vehicle. You cannot deduct any other taxes or fees on your Schedule A (Source: https://www.ftb.ca.gov/individuals/faq/ivr/222.shtml). If you do not have the breakdown from your billing notice, you can get the information from the CA DMV's web site: https://www.dmv.ca.gov/FeeCalculatorWeb/vlfForm.do)

You may deduct any interest on loans for your RV the way you would deduct mortgage interest on your home. You enter this on Schedule A as part of your mortgage interest deduction (Source: http://www.irs.gov/publications/p936/ar02.html, Qualified Home). You may not have received a Form 1098 from the lender, but you *can* (and should) request one by contacting them; otherwise, you can enter your interest in the TurboTax® worksheet (source: https://ttlc.intuit.com/questions/1900976-form-1098-mortgage-interest-statement) and it will transfer to the Schedule A.

That's it. Hope this helps.

Thank you! That's exactly what I did :-) No loan, so I didn't have to deal with that.

As a long time RVer in California, and having taken the H&R Block Tax Preparers course a few years ago (better than staying at a Holiday Inn Express!) and completing the course with a 96% (meaning that 4% of my answers would be wrong as compared to a study that was done that showed the IRS hot line folks got approximately 38% of the answers were wrong as compared to the publications - Source: http://www.gao.gov/products/GGD-90-36), applied and received a tax preparer ID, and I'm a beta-tester for TurboTax®, I think I am in a position to discuss tax ramifications and using TurboTax®. I'll even cite the federal and state tax publications to back up my response. I am, however *not* a certified public accountant, so take my credentials accordingly.

Here's my response.

You may deduct the California Vehicle License Fee portion of your registration as you would on your tow or other vehicle. You cannot deduct any other taxes or fees on your Schedule A (Source: https://www.ftb.ca.gov/individuals/faq/ivr/222.shtml). If you do not have the breakdown from your billing notice, you can get the information from the CA DMV's web site: https://www.dmv.ca.gov/FeeCalculatorWeb/vlfForm.do)

You may deduct any interest on loans for your RV the way you would deduct mortgage interest on your home. You enter this on Schedule A as part of your mortgage interest deduction (Source: http://www.irs.gov/publications/p936/ar02.html, Qualified Home). You may not have received a Form 1098 from the lender, but you *can* (and should) request one by contacting them; otherwise, you can enter your interest in the TurboTax® worksheet (source: https://ttlc.intuit.com/questions/1900976-form-1098-mortgage-interest-statement) and it will transfer to the Schedule A.

That's it. Hope this helps.

I do not ask my accountant RV tips, so I would not ask tax advice here.

BTW -- my daughter is our CPA. She loves turbo tax. She makes a lot of money from people who used turbo tax then come running to her pleading to fix their taxes after they get a letter from the IRS.

maria_bettina wrote:
:\ Wish I could use the full $75, but I can't see how.

Perspective is everything...
I wish I was in a tax bracket where a $75.00 deduction made a difference! ;)

accsys wrote:
Taxes based on the value of the property are deductible, fees based on some other criteria are not. For instance, in Florida our registration fees are based on weight/classification of the vehicle and have nothing to do with the value of the vehicle. They are not deductible.

Thank you!
After doing some online research, I completely agree. The VLF in California was created based on vehicle value and it decreases every year as value decreases; therefore, that is the only "fee" that is tax-deductible. So I am using the $4 value and added a vehicle for the TT. Turns out, it didn't decrease how much we have to pay in taxes at all. :\ Wish I could use the full $75, but I can't see how.

Taxes based on the value of the property are deductible, fees based on some other criteria are not. For instance, in Florida our registration fees are based on weight/classification of the vehicle and have nothing to do with the value of the vehicle. They are not deductible.

2oldman wrote:

maria_bettina wrote:
Why wouldn't you ask a federal tax auditor what kind of RV to buy?. If you can't help, get off my thread. 'Nuff said.

Oh please. You're a Senior.. don't you have thick skin by now?

That would be a big, fat N-O. ;) I am a very sensitive lady. (Heh!)

Francesca Knowles wrote:

Dick_B wrote:
According to IRS Publ. 529, Miscellaneous Deductions, page 14, under the list of Nondeductible Expenses it includes `Fees and licenses, such as car licenses, marriage licenses, and dog tags'.
You can view this publication on www.irs.gov and search for it.

Here's a link to that publication.

And thank you, Dick and Francesca!

Dick_B wrote:
According to IRS Publ. 529, Miscellaneous Deductions, page 14, under the list of Nondeductible Expenses it includes `Fees and licenses, such as car licenses, marriage licenses, and dog tags'.
You can view this publication on www.irs.gov and search for it.

Here's a link to that publication.

maria_bettina wrote:
Why wouldn't you ask a federal tax auditor what kind of RV to buy?. If you can't help, get off my thread. 'Nuff said.

Oh please. You're a Senior.. don't you have thick skin by now?

Jim Shoe wrote:
I wouldn't ask a bunch of RVers what deductions I could take on my taxes, any more than I'd ask a Federal Tax auditor what kind of RV to buy. I use Turbo Tax all the time. They even tell you that they'll go to an audit with you, but the only thing they can and will defend is their math, not what you choose to deduct.

Why wouldn't you ask a federal tax auditor what kind of RV to buy? If he's researched RVs, has owned RVs, and knows his stuff... which is exactly why I am posting here. People have travel trailers; people do their own taxes; someone has likely run into this before while doing taxes. If you can't help, get off my thread. 'Nuff said.