Where do I enter WA state renewal tab fees - $85 which include RTA tax - $15 for a Sch C for their personal vehicle?

[dude7707]

Using Car and Truck Expenses W/S:
  1.  Actual Expenses:
          18b - 0 since this portion is NOT DEDUCTIBLE.
  2.  Total Car and Truck Expenses:
          26b - $15 - DEDUCTIBLE SINCE THIS IS THE RTA
                               TAX?
         
This correct?

[George4Tacks · Accepted solution]

I don't know PS, so the line numbers do not translate for me. The total actual vehicle expense is $85. It has two components $70 is some sort of fee and $15 is some sort of tax. Assuming 50% business usage I should see 50% of ($70 plus any other expense like gas, oil, service to show up as vehicle expense) AND 50% of $15 to show up on Schedule C as Tax and the other 50% to show up on Schedule A as personal property tax. 

Short form - Even what would not be deductible on Schedule A, is still a deductible for the business portion of usage on Schedule C. What is deductible on Schedule A would be split proportionally on Schedules A and C according to business usage. 

[qbteachmt]

If you have nondeductible Actual expense, but you are trying to record Mileage Allowance, do you know the computation for Allowance is to include ownership and operation, which would already include registration costs? You cannot double-dip.

[dude7707]

So are you saying, giving these are the ONLY ACTUAL car expenses - $85 the entry would be:
Using Car and Truck Expenses W/S:
  1.  Actual Expenses:
          18b - $70
  2.  Total Car and Truck Expenses:
          26b - $15

Or are you saying something different?

[qbteachmt]

You seem to be focusing on $85. Not the Vehicle's use and operation for Business use, for purposes of the Sched C. You haven't answered that you are taking Mileage Allowance. Is the only amount you want to take as expense the $85? What about the costs for operation that involved business use? There is an incomplete picture being painted.

[dude7707]

I am ONLY USING THIS as AN EXAMPLE......I know about about all the other auto deductible related expenses you can take.  I'm not requesting to provide the entire picture, but thank you for mentioning this.

For 2019:
1st year in service.
T/P annual mileage:  200
Business Miles:  100
Actual Expenses - FOR THIS EXAMPLE ONLY - $85
Business %:  50
STD Mileage rate: .58/Busn. Mile

Actual Vs. Std?
  1.  Actual Deductible - (50% of $70) = $35
  2.  STD - (100 X .58 = $58 & 50% of $15) - $66

In this LIMITED EXAMPLE ONLY, T/P would elect STD.

Does this provide a complete picture for you?

 

[qbteachmt]

Here is what I described:

STD Mileage rate: .58/Busn. Mile <== covers all operating costs, including registration

This is conflicting:

2.  STD - (100 X .58 = $58 & 50% of $15) - $66 <== Double Dip; you just added that portion of Actual into the Allowance computation, which is already part of the 58 cent value per mile. There is no "and this, too" in the Allowance factor. Not adding "actual insurance" and not "and actual fuel" for example. It is already Per Mile, for operating costs as Allowance. That is instead of anything "actual" or even partially "actual."

You seem to have the $70 as "actual" but Actual is the $85.

Example: all Actual costs for the car (gas, tires, registration, etc) multiplied by business portion. Nothing for 58 cents and nothing for miles, except they help you determine % for personal and for business use.

In your "STD" example of 100 miles business, that math is: 100 x 58 cents per mile. Done. You don't follow up by adding any more to it.

The only difference here might be how Property Taxes apply to vehicles for your State. Property taxes are not per mile.

[dude7707]

Let's try this another way, rather going through all these calculations and thorough explanation of what is actual Vs standard mileage methods.....JUST USING MY NUMBERS ONLY IN THIS EXAMPLE ABOVE, enter the $85 WA state renewal fees into I assume you have 2019 Proseries Pro using the Car and Truck Expenses Worksheet and tell me what is Actual Expenses on Ln 22 - SINCE THE $70 PORTION IN THIS CASE IS NOT DEDUCTIBLE as NOTED BELOW, I show $0?  The $15 which is the RTA is considered Property taxes and is EXCLUDED from Ln 18b as stated - and therefore added on Ln 26b, this is why I break it out.  This only relates to WA state.   So do you get on Ln 30 $66?  So then does the $66 then show on Sch C - Ln 9?

See one reference from Turbotax below:

As you correctly identify in your question, in the State of Washington, the only PORTION of your vehicle registration charge that is tax deductible (on Form 1040 Schedule A as an itemized deduction)  -
NOTE THEY ARE REFERRING TO A SCH A DEDUCTION, RATHER THAN SCH C, SAME PRINCIPLE THOUGH.

is the amount shown on your registration statement for the RTA (Regional Transit Authority) tax.  Only residents of King, Pierce, and Snohomish counties, and who live within the Sound Transit District, will have an RTA tax.  If you do not pay RTA taxes, then you DO NOT have a tax deductible portion of vehicle registration fees for Washington vehicles.