Is the vehicle registration fee deductible on the Iowa income tax return?
If you itemize deductions, a portion of the automobile or multipurpose vehicle registration fee you paid in the tax year may be deducted as personal property tax on your Iowa Schedule A and federal Schedule A. This deduction is for registration fees paid based on the value of qualifying automobiles and multipurpose vehicles. Multipurpose vehicles are defined as motor vehicles designed to carry not more than 10 people, and constructed either on a truck chassis or with special features for occasional off-road operation [Iowa Code Section 321.1(44)]. Registration fees on the following vehicles are not deductible: pickups, motor trucks, work vans, ambulances, hearses, non-passenger-carrying vans, campers, motorcycles, or motor bikes. See the instructions for line 37 of the IA 1040 for guidance on how to calculate this deduction.
