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Tax Deductions
Tax deductions
taxes
Some taxes can lower your IRS bill

The add-on of property taxes to the standard amount expired at the end of the 2009 tax year, and it was not part of the tax bill enacted in December 2010 extending other tax breaks.

So to deduct property taxes on your 2011 tax return, you must itemize.

Deducting vehicle sales taxes

Another standard tax deduction addition also is gone for 2011 taxes.

Individuals who bought a new vehicle between Feb. 17, 2009, and Dec. 31, 2009, were allowed to include that sales tax as part of their standard deduction on their 2009 tax return. There's no such choice for standard deduction filers who bought a motor vehicle this tax filing season.

But a long-standing sales tax addition for taxpayers who itemize remains. If you bought a motor vehicle in 2011, sales tax paid on that purchase can be added to the rest of the sales tax amount you deduct on Schedule A.

And what, in the IRS' estimation, is a motor vehicle? The definition includes cars, motorcycles, motor homes, recreational vehicles, sport utility vehicles, trucks, vans and off-road vehicles. You also can deduct the sales tax paid on a plane or boat if the tax rate was the same as your state's general sales tax rate.

Just add the vehicle's (or boat's or plane's) sales tax amount to the state and local sales tax amount you enter on line 5b of Schedule A. For most filers, the amount of general sales tax is found in the tables provided for each state in the Schedule A instructions.

And your total deductible sales tax amount -- your state taxes, any local sales taxes and motor vehicle sales tax additions -- is calculated using the general sales tax deduction worksheet that's also found in the Schedule A instructions.

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