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Posted by Ian Pilcher on January 11, 2008, 12:32 pm
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I live in Texas, so I'll be deducting state and local sales taxes on my
2007 return. In addition to the estimated taxes, I will deduct the
sales taxes I paid when I replaced my windows in 2007.
The original quote looks like this:
Material Sub-Total $ 11,202.04
Cash & Qty Discount 2,800.51
-----------
Taxable Total 8,401.53
Sales TAX 693.13
Installation Labor 3,480.00
-----------
Cash or Check Price $ 12,574.66
===========
Ultimately, we negotiated a price of $12,000 (paid with a credit card).
We did not, however, receive an itemized quote showing the $12,000
price. The sales representative simply changed the bottom-line price on
the quote and initialed it.
How should I calculate the amount of sales tax to deduct?
Thanks!
--
========================================================================
Ian Pilcher arequipeno@gmail.com
========================================================================
--
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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
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<< to this newsgroup as well as our anti-spamming policy >>
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Posted by Harlan Lunsford on January 11, 2008, 5:38 pm
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Ian Pilcher wrote:
> I live in Texas, so I'll be deducting state and local sales taxes on my
> 2007 return. In addition to the estimated taxes, I will deduct the
> sales taxes I paid when I replaced my windows in 2007.
>
> The original quote looks like this:
>
> Material Sub-Total $ 11,202.04
> Cash & Qty Discount 2,800.51
> -----------
> Taxable Total 8,401.53
> Sales TAX 693.13
> Installation Labor 3,480.00
> -----------
> Cash or Check Price $ 12,574.66
> ===========
>
> Ultimately, we negotiated a price of $12,000 (paid with a credit card).
> We did not, however, receive an itemized quote showing the $12,000
> price. The sales representative simply changed the bottom-line price on
> the quote and initialed it.
>
> How should I calculate the amount of sales tax to deduct?
>
> Thanks!
>
I can't speak for Texas, but before you plan on doing any deducting,
take a look at IRS publication 600, page 4. You can only deduct this
sales tax (assuming it qualifies as a major renovation whateverinthehell
that means) AND under state law, your contractor is considered your
agent. A mere quote sheet like contractors many times use is not
sufficient. There must be a contract which officially states that
contractor IS your agent.
So if you still qualify, great!
ChEAr$,
Harlan Lunsford, EA n LA
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Gil Faver on January 11, 2008, 9:17 pm
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> Ian Pilcher wrote:
>> I live in Texas, so I'll be deducting state and local sales taxes on my
>> 2007 return. In addition to the estimated taxes, I will deduct the
>> sales taxes I paid when I replaced my windows in 2007.
>>
>> The original quote looks like this:
>>
>> Material Sub-Total $ 11,202.04
>> Cash & Qty Discount 2,800.51
>> -----------
>> Taxable Total 8,401.53
>> Sales TAX 693.13
>> Installation Labor 3,480.00
>> -----------
>> Cash or Check Price $ 12,574.66
>> ===========
>>
>> Ultimately, we negotiated a price of $12,000 (paid with a credit card).
>> We did not, however, receive an itemized quote showing the $12,000
>> price. The sales representative simply changed the bottom-line price on
>> the quote and initialed it.
>>
>> How should I calculate the amount of sales tax to deduct?
>>
>> Thanks!
>>
> I can't speak for Texas, but before you plan on doing any deducting, take
> a look at IRS publication 600, page 4. You can only deduct this
> sales tax (assuming it qualifies as a major renovation whateverinthehell
> that means) AND under state law, your contractor is considered your
> agent. A mere quote sheet like contractors many times use is not
> sufficient. There must be a contract which officially states that
> contractor IS your agent.
>
> So if you still qualify, great!
>
> ChEAr$,
> Harlan Lunsford, EA n LA
If it does NOT qualify as a "major renovation" (I don't think it does), then
it is deductible as sales taxes without the special consideration on page 4,
no?
And, even if it IS a "major renovation", you only need any ONE of the three
choices a, b, c shown on page 4.
What the heck does "paid the sales taxes DIRECTLY" mean?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Harlan Lunsford on January 12, 2008, 2:05 pm
Please log in for more thread options Gil Faver wrote:
>> Ian Pilcher wrote:
>>> I live in Texas, so I'll be deducting state and local sales taxes on my
>>> 2007 return. In addition to the estimated taxes, I will deduct the
>>> sales taxes I paid when I replaced my windows in 2007.
>>>
>>> The original quote looks like this:
>>>
>>> Material Sub-Total $ 11,202.04
>>> Cash & Qty Discount 2,800.51
>>> -----------
>>> Taxable Total 8,401.53
>>> Sales TAX 693.13
>>> Installation Labor 3,480.00
>>> -----------
>>> Cash or Check Price $ 12,574.66
>>> ===========
>>>
>>> Ultimately, we negotiated a price of $12,000 (paid with a credit card).
>>> We did not, however, receive an itemized quote showing the $12,000
>>> price. The sales representative simply changed the bottom-line price on
>>> the quote and initialed it.
>>>
>>> How should I calculate the amount of sales tax to deduct?
>>>
>>> Thanks!
>>>
>> I can't speak for Texas, but before you plan on doing any deducting, take
>> a look at IRS publication 600, page 4. You can only deduct this
>> sales tax (assuming it qualifies as a major renovation whateverinthehell
>> that means) AND under state law, your contractor is considered your
>> agent. A mere quote sheet like contractors many times use is not
>> sufficient. There must be a contract which officially states that
>> contractor IS your agent.
>>
>> So if you still qualify, great!
>>
>> ChEAr$,
>> Harlan Lunsford, EA n LA
>
>
> If it does NOT qualify as a "major renovation" (I don't think it does), then
> it is deductible as sales taxes without the special consideration on page 4,
> no?
That is what I was getting at of course. "Major renovation" to me
suggests additions, renewing foundations, etc.
>
> And, even if it IS a "major renovation", you only need any ONE of the three
> choices a, b, c shown on page 4.
>
> What the heck does "paid the sales taxes DIRECTLY" mean?
Two ways to handle the deal. 1. I could hire a contractor and let him
buy materials (whether or not as my agent per state law), or 2. (and
this is always my choice), hire the contractor and have him give me a
list of what he needs and I then go to Home Depot or local store and pay
for them (think air miles!) and have them delivered before contractor
arrives.
ChEAr$,
Harlan Lunsford, EA n LA
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Ian Pilcher on January 12, 2008, 3:42 pm
Please log in for more thread options Harlan Lunsford wrote:
> I can't speak for Texas, but before you plan on doing any deducting,
> take a look at IRS publication 600, page 4. You can only deduct this
> sales tax (assuming it qualifies as a major renovation whateverinthehell
> that means) AND under state law, your contractor is considered your
> agent. A mere quote sheet like contractors many times use is not
> sufficient. There must be a contract which officially states that
> contractor IS your agent.
Well poopers! (But glad I asked.)
Thanks!
--
========================================================================
Ian Pilcher arequipeno@gmail.com
========================================================================
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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