I'm not sure that is correct. My understanding is that ALL sales tax is deductible. Yup, even on clothes and lattes and the like. The thinking is that some states have state income tax, which has long been deductible on federal taxes. Other states that do not have income tax make up the difference by charging higher sales tax. So, finally the IRS balanced the equation to where no-income-tax state residents could deduct their share of the social burden. Usually, there is a standard deduction for average sales tax that it figures you would have spent. But if you had some very large purchases (vehicles obviously would count), then it may be more worthwhile to individually itemize. Check with a tax professional, but I'm pretty sure ANY large purchase in which sales tax is charged can count towards that total deduction.
1 - 5 of 5 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.