3. Sales taxes on vehicles purchased before January 1, 2010.
A person may be able to deduct state and local sales or excise taxes paid after February 16, 2009, for the purchase of any new motor vehicles, Marquez says. In other words, if a person purchased a new car in late 2009 and didn't pay sales taxes until 2010, then those taxes may be deducted, she says. For more information, refer to Form 1040. Currently, that information is listed under "Line 40," in the bottom right corner on page 33.
4. Depreciation on a vehicle.
A vehicle's value decreases each year, and people who use their cars for work can claim a percentage of this loss. The formula for this is complicated and is best worked out by a tax professional.
5. Leasing a business vehicle.
If people lease their cars for business, the entire lease payment can be deducted from the taxable income, Charney says. In some cases they can combine this with individual deductions, such as operating costs. He says that business people will want to try applying the deductions in different ways to see which is best for the taxpayer's individual situation.
For more auto-related tax questions, an H&R Block spokesman suggested contacting the company's Community Forum, where taxpayers can ask virtually any question and a tax professional will answer.
And for those people who worry that too many deductions will prompt an audit, Charney offers this advice: "The reasons for triggering an audit are more private than the formula for Coca-Cola," he says. "If you have deductions, there is no reason not to claim them. If you have good records, you have nothing to fear for claiming them."