- 8 - defined as an ad valorem tax that is imposed on an annual basis in respect of personal property. Thus, an ad valorem auto license fee is deductible as a personal property tax, whereas an annual flat registration fee is not deductible. See sec. 164(a)(2); Mann v. Commissioner, T.C. Memo. 1975-74; sec. 1.164- 3(c), Income Tax Regs. In 1993 and 1994, respectively, petitioner and/or her family members paid $268 and $207 in fees to the California DMV for the registration and licensing of four different vehicles. The record does not indicate what portion of these fees was an annual flat registration fee. Respondent, however, conceded that all of these DMV registration fees are ad valorem taxes.6 After respondent’s concession, the only remaining issue regarding these DMV registration fees is whether they were imposed on petitioner. Generally, personal property taxes are only deductible by the taxpayer upon whom they are imposed. See sec. 1.164-1(a), Income Tax Regs. Thus, in order to be entitled to these deductions, petitioner bears the burden of establishing ownership of the vehicles in question. See Rule 142(a). During 1993 and 1994, only two of the cars for which petitioner is attempting to deduct DMV registration fees were actually 6 Petitioner also contends that she is entitled to deduct smog certification expenses and driver’s license renewal fees. These expenses, however, are not ad valorem fees and are therefore not deductible by petitioner.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011