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March 3, 2025
Question

California Resident who owns a registered vehicle in Nevada

  • March 3, 2025
  • 1 reply
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I have a Nevada registration on a vehicle I keep in Nevada. I want to deduct the registration fee but since I only file a federal and California return TurboTax only guides me on how to deduct the CA registration fee. Which fees can I deduct on the Nevada Registration? I assume the Basic Gov Service Tax and the Supplemental Gov Services Tax. I also want to know if it's okay to just add this Nevada Vehicle to the "Enter your car registration fees" section as it will probably be included in my CA deductions. Is it okay to deduct a NV registered vehicle on my California Return?

    1 reply

    March 5, 2025

    Yes, if you are a California resident, you can still deduct the tax portion of registration fees paid to another state. Enter the amount you paid in the Federal section of TurboTax, regardless of whether you are able to itemize on the Federal return. TurboTax will flow the information through to your California return.

     

    The tax portion of the fees you paid on your Nevada vehicles is deductible. You have already identified which portion of the fees you paid represents taxes.  See this help article for more information.

     

    When you go through the California return interview in TurboTax, make and needed California changes in the screens provided. California allows most of the same taxes as deductions, except it doesn't allow a deduction for state and local income taxes. See this excerpt from the California Instructions for Schedule CA, where the differences are shown on your California return:


    Line 5a – State and Local Taxes

    California does not allow a deduction for state and local income tax (including limited partnership tax and income or franchise tax paid by corporations) and State Disability Insurance (SDI) or state and local general sales tax. Enter that amount on line 5a, column B.

     

    Line 5e – The federal deduction for state and local tax is limited to $10,000 ($5,000 for married filing separately) for the aggregate of state and local income taxes and property taxes. California does not conform. If your deduction was limited under federal law, enter an adjustment on line 5e, column C for the amount over the federal limit.

     

    Line 6 – Other Taxes

    California does not allow a deduction for foreign income taxes. Enter that amount on line 6, column B. Federal law suspended the deduction for foreign property taxes. California law does not conform. Enter the amount on line 6, column C.

     

    Generation skipping transfer tax – Tax paid on generation skipping transfers is not deductible under California law. Enter the amount of generation skipping tax included in line 6, column A on line 6, column B.

     

     

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