If you use the money for a car, a vacation, college tuition, etc, then you can deduct your interest on to have owned the home and lived in it as your primary residence for two years out of the last five years prior to the sale even if you didn't massachusetts real estate tax. Taxgirl says: the post you're referring to is this one and was specifically about whether the purchase of a new car qualified for the new sales tax deduction you can deduct the actual sales taxes that you paid if the tax rate was the same as the general sales tax rate for your locality. Deductions for a new vehicle to enter personal property tax or sales tax paid on a new vehicle: sales tax you can elect to deduct state and local general sales taxes instead of state and local income taxes as an itemized deduction on schedule a (form 1040. Learn about car tax write off opportunites for business and personal purchases so, in order to help you find tax write offs and other ways to reduce your taxes, here are some tips to help you out deduct the sales tax on your income tax return in recent years.
You can deduct either your state's sales tax or income tax, but not both, on schedule a of internal revenue service form 1040 you can only deduct sales tax if you itemize. Irs schedule c tax deductions & expenses for small business owners you cannot deduct federal income taxes here, although you can deduct half your self-employment tax on your 1040 if you paid any sales tax on items that you bought for the business. How to deduct state taxes on your federal tax return ramona paden you can deduct state income tax or state sales tax, but you can't deduct both the state sales tax deduction is worth exploring if you bought a car or made another major purchase during the tax year. You generally are allowed to deduct state and local general sales taxes instead of your state and local income taxes, as an itemized deduction.
Depending on how much sales tax you paid on the vehicle you can write off a percentage of the costs associated with the car based upon the percentage of time you spend using it for such purpose how to get the biggest car tax deduction for mileage. It is necessary to keep records of all your sales that way, if you continue to deduct your capital loss for many years, you can prove to the irs the irs considers this a wash sale, and the sale is not recognized for tax purposes you cannot deduct capital losses if you sold the stock to a. Sales taxes you can deduct state and local sales taxes on the mobile home, but you must then forgo the break for state and local income taxes the irs limits the sales tax break to the general sales tax rate for your state, city or county. I am assuming you are talking about a personal income tax return (form 540) and sales taxes you paid during the year your question wasn't phased very clearly this is how it works when you prepare your federal return, if you itemize your deducti. Sales tax is a consumption tax that goes to the government, federal or state so, it's unlikely that you'd be able to deduct the sales tax, unless you make up for it in some other way.
Gobankingrates taxes tax laws deductions tax deductions 2017: 50 tax write-offs you don't know about tax deductions 2017: apart from state and local sales tax, you can also deduct: local and state personal property taxes foreign, local and state real estate taxes foreign. You can elect to deduct state and local general sales taxes instead of state and local income taxes you can't deduct both.
Buying a car is never very easy, especially when it comes to paying sales tax you don't hear much about this from the dealer until the purchase agreement arrives, and reveals a large additional charge on your new car some states even set a higher rate of sales tax for vehicles than for other. Write off your sales tax find out that and more at legalzoomcom. Or you can write to: internal revenue service tax forms and publications if you pay off your home mortgage early, you may have to pay a penalty and you didn't save your receipts showing the sales tax you paid. I purchased 3 new cars in 2016 can i deduct the sales tax on the cars i also bought a new car in 2015 which i did - answered by a verified tax professional.
Sales tax: is it tax-deductible by denise caldwell maintaining current financial records makes your life simpler when it's time to pay business taxes if you made a large purchase such as a boat or car, you can deduct sales tax as part your item's basis. If you opt to deduct sales taxes, check the box on line 5b again as in prior years, you can add the sales tax from your auto purchase to the general sales tax amount that goes on line 5. Besides the new car smell, your car probably also came with a hefty sales tax bill luckily for you, the internal revenue service allows a deduction for state and local sales taxes paid on any. The internal revenue service (irs) permits you to write off either your state and local income tax or sales taxes when itemizing your deductions people who live in a state that does not impose income taxes often benefit most from this deduction however, you might also be better off deducting. County sales tax rates excise taxes by state use tax by state property taxes california tax deductions tax year 2013 you can deduct one personal exemption from your gross income if you are responsible for supporting yourself financially.