In 2017 I bought a used car out-of-state (rather than sort through the local options to find one without hidden water damage).
- Because I was not a Kansas resident, I had Kansas sales tax waived at the time of purchase
- In order to title and register the vehicle where I reside in Texas, I paid a "sales and use tax" along with the other title and registration fees
- Texas has no income tax, so it is always advantageous to use state and local sales tax instead when itemizing
Now, as best I understand, Texas doesn't have jurisdiction over the sale in Kansas, so they can't actually levy sales tax on it. They do have jurisdiction over registration, so they choose to levy a use tax which is equal to, but is not, a sales tax. But I don't know whether the IRS rules treat the use tax equivalently to sales tax or to vehicle property tax.
Can I get a deduction for this tax payment, in addition to the table-based sales tax estimate?
To do so, would I list the tax as "Vehicle and Personal Property Tax" where value-based registration taxes go (1040 Schedule A line 7) or "State and Local Sales Tax" (1040 Schedule A line 5)?
Looking at the form (the instructions from H&R TaxCut software I'm using seem not to cover this, apart from saying that annual taxes, which this is not, do appear in line 7) it seems like if this tax is a sales tax, it gets listed on line 5 mini-worksheet for sales taxes (a) which lets me claim it in addition to the table-calculated sales tax (which would swallow it). So it seems that yes, I will get a deduction. But I still need to list it in the right place in case the IRS is comparing to other information sources.
So, line 5b (sub-worksheet line a) or line 7 for this exactly-like-but-not-really-a-sales-tax?