Not sure what to do with car registration papers? Here’s what the experts at FreedomFiler say.
SUMMARY: Keep the current proof of registration in the CAR, the paid registration renewal notice in your TAX files, and the title in your PERMANENT file. (Any extraneous registration renewal paperwork can be filed MONTHLY after completed).
Most importantly, your current proof of vehicle registration should be kept inside the glove compartment of your vehicle (along with proof of auto insurance coverage and emergency contact information). You will receive a renewal notice from your state department of motor vehicles.
An unanswered/unpaid registration renewal notice belongs in an action file, typically on your desktop to be paid immediately or before the registration deadline (use “ACTIVE” labels if necessary – e.g. “Bills To Pay”).
A completed/paid registration renewal notice is a tax deductible transaction (if you itemize deductions**), so file it in the light-blue TAX section, e.g. “Tax Documents”, “Tax Paid (Property/Sales)”, or “Other Deductions” depending on how detailed your tax categories are. (You may also be filing business or tax deductible receipts by month or vendor A-Z, if you use accounting software or a spreadsheet to categorize expenses).
The vehicle proof of registration and renewal notices should not be confused with the vehicle title transfer or closing paperwork from the time you purchased the car, filed in PERMANENT “Auto Records”. A title transfer document is especially needed if you purchase a used car, but may not be provided by a new car dealer in certain situations (i.e. when leasing a new car). When purchasing a new car from a dealer the title transfer and initial registration is handled by the dealer. For subsequent registration renewal, you will automatically receive notices in the mail.
**motor vehicle registration fees are considered personal property taxes on IRS Schedule A for itemized tax deductions.
FreedomFiler Team (FreedomFiler.com)
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