Vehicle taxes, such as registration fees or personal property taxes based on the value of your vehicle, are generally considered nondeductible personal expenses. However, if you use your vehicle for business purposes, a portion of these taxes may be deductible as a business expense. The deductible amount is typically based on the percentage of business use of the vehicle. Accurate records of mileage and the calculation of business versus personal use are critical. Always refer to current IRS guidelines and consult with a tax professional to ensure that you correctly allocate and substantiate any deductible vehicle taxes.
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