[NHCPA23]

Hey guys just a quick question in REG. I have seen that personal property taxes are deductible as an itemized deduction on schedule A according to Becker material. The ninja notes on page 14 says that its non-deductible. I would appreciate help on this matter. Thanks

[Lindrobe]

According to my understanding, personal property taxes are deductible if the tax is based on the value of the personal property. The tax is not deductible if it is based on weight or some other factor.

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Lindrobe]

According to my understanding, personal property taxes are deductible if the tax is based on the value of the personal property. The tax is not deductible if it is based on weight or some other factor.

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[MikeHoncho]

Personal property taxes that are based on the value of the property (a.k.a ad valorem tax) are deductible. If the personal property tax is not based on the value of the asset then it is most likely not deductible.

Example:

Your state charges a yearly motor vehicle registration tax of 1% of value plus 50 cents per hundredweight. You paid $32 based on the value ($1,500) and weight (3,400 lbs.) of your car. You can deduct $15 (1% × $1,500) as a personal property tax because it is based on the value. The remaining $17 ($.50 × 34), based on the weight, is not deductible.

*Source of this example:

https://www.irs.gov/publications/p17/ch22.html#en_US_2013_publink1000173204

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[MikeHoncho]

Personal property taxes that are based on the value of the property (a.k.a ad valorem tax) are deductible. If the personal property tax is not based on the value of the asset then it is most likely not deductible.

Example:

Your state charges a yearly motor vehicle registration tax of 1% of value plus 50 cents per hundredweight. You paid $32 based on the value ($1,500) and weight (3,400 lbs.) of your car. You can deduct $15 (1% × $1,500) as a personal property tax because it is based on the value. The remaining $17 ($.50 × 34), based on the weight, is not deductible.

*Source of this example:

https://www.irs.gov/publications/p17/ch22.html#en_US_2013_publink1000173204

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[MikeHoncho]

You beat me to it @Lindrobe

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[MikeHoncho]

You beat me to it @Lindrobe

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[MikeHoncho]

I gotta start hitting refresh before I post

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[MikeHoncho]

I gotta start hitting refresh before I post

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[NHCPA23]

Thanks for the explanations guys. Best of luck to you all!

[NHCPA23]

Thanks for the explanations guys. Best of luck to you all!

[Lindrobe]

At least we both gave him the same answer, Mike. 🙂 How are you feeling about your REG score?

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Lindrobe]

At least we both gave him the same answer, Mike. 🙂 How are you feeling about your REG score?

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[MikeHoncho]

Very true. Idk I'm going through those ups and downs you experience right before score release. I felt really good about my performance on multiple choice but terrible about my sims. If I knew at least a couple answers to the sims besides the research question I wouldn't be worried.

But now I'm not so sure that I did well on the mcq. I looked up the answers to a couple questions that stumped me during the test and I got them wrong. I read through almost all of the Reg Experience thread and it seems the majority of people that felt the same way ended up passing. I walked out of AUD knowing I passed and only scored a 78. I walked out of BEC thinking I failed and scored a 86. Anything can happen I guess. Good luck studying, your closing in on the one week mark! Give it your all the next few days and then you're done forever

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[MikeHoncho]

Very true. Idk I'm going through those ups and downs you experience right before score release. I felt really good about my performance on multiple choice but terrible about my sims. If I knew at least a couple answers to the sims besides the research question I wouldn't be worried.

But now I'm not so sure that I did well on the mcq. I looked up the answers to a couple questions that stumped me during the test and I got them wrong. I read through almost all of the Reg Experience thread and it seems the majority of people that felt the same way ended up passing. I walked out of AUD knowing I passed and only scored a 78. I walked out of BEC thinking I failed and scored a 86. Anything can happen I guess. Good luck studying, your closing in on the one week mark! Give it your all the next few days and then you're done forever

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[Lindrobe]

Mike, that is exactly how I felt on FAR. I felt like I bombed the SIMS and didn't feel that great on the MCQs. I rushed out to my car after the exam and looked up some of the MCQs and knew that I missed a couple of topics completely. I never expected to get an 87.

For what its worth, I think that you seem to know your stuff pretty well, so I think you are going to be ok. I know that you won't feel completely relieved until you see that passing score this week.

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Author]

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