Sales Tax Deduction on Large Purchases-Easily Overlooked
February 22, 2011No Comments
Taxpayers that elect to deduct sales tax instead of income tax paid typically use the sales tax deduction calculator to calculate their deduction instead of saving receipts and totaling the sales tax paid. An easily overlooked deduction is the sales tax paid on large purchases that may be added to the amount computed with the calculator.
Large purchases include:
- A motor vehicle (car, motorcycle, motor home, recreational vehicle, sport utility vehicle, truck, van, and off-road vehicle) whether purchased or leased.
- An aircraft or boat.
- A home (including a mobile home or prefab home or a substantial addition to or major renovation of a home) with certain restrictions.