Questions on Schedule A Tax Deductions

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Subject Author Date Questions on Schedule A Tax Deductions nish 09-16-2008  Re: Questions on Schedule A Tax Deductions Paul Thomas, CPA 09-16-2008  Re: Questions on Schedule A Tax Deductions JoeSixPack 09-20-2008  Re: Questions on Schedule A Tax Deductions Harlan Lunsford 09-21-2008  Re: Questions on Schedule A Tax Deductions D. Stussy 09-16-2008  Re: Questions on Schedule A Tax Deductions Mark Bole 09-16-2008  Re: Questions on Schedule A Tax Deductions Alan 09-16-2008  Re: Questions on Schedule A Tax Deductions Mark Bole 09-16-2008
Posted by nish on September 16, 2008, 2:35 pm Please log in for more thread options Schedule A for Itemized Deductions contains lines for claiming state and local income taxes, or general sales tax. Is there any way to get any compensation for sales tax if you are claiming the state income tax? It's a shame if no, since in some states the tax burden is heavy for both income tax and sales tax. In effect there is a kind of discrimination at work on this form against the resident of any state that balances the tax burden across income tax and sales tax. Line 7 has a deduction for Personal Property Taxes. Reading the instructions, I don't see any requirement that you be the owner of the property. If you simply live in a residence owned by another person, and you personally pay the property tax, can you claim it as a legitimate deduction? And in the big picture, I guess none of these deductions mean a whole lot anyway, since they get backed out in the Form 6251 AMT calculation? nish -- << ------------------------------------------------------- >> << 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 Paul Thomas, CPA on September 16, 2008, 2:52 pm Please log in for more thread options > Schedule A for Itemized Deductions contains lines for claiming state and > local income taxes, or general sales tax. Is there any way to get any > compensation for sales tax if you are claiming the state income tax? > It's a shame if no, since in some states the tax burden is heavy for both > income tax and sales tax. In effect there is a kind of discrimination at > work on this form against the resident of any state that balances the tax > burden across income tax and sales tax. You have to draw lines somewhere. That's where Congress drew the line this time. At one time, eons ago it seems, they allowed deductions for taxes on tobacco products and other items. One day, years from now, we'll stand in awe of the deductions that were allowed and the credits that were available in 2007, and we'll proclaim these years "the good old days". > Line 7 has a deduction for Personal Property Taxes. Reading the > instructions, I don't see any requirement that you be the owner of the > property. If you simply live in a residence owned by another person, and > you personally pay the property tax, can you claim it as a legitimate > deduction? Not for federal purposes. You have to own the property and be liable for the tax to be able to deduct it. Some states allow a deduction, as a percent of rent paid, toward a property tax credit or deduction. But to deduct that, you have to have made the rent payment and not just lived there with a friend. > And in the big picture, I guess none of these deductions mean a whole lot > anyway, since they get backed out in the Form 6251 AMT calculation? Maybe. They mean a lot to those who AMT does not impact. -- Paul A. Thomas, CPA Watkinsville, Georgia -- << ------------------------------------------------------- >> << 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 JoeSixPack on September 20, 2008, 7:34 pm Please log in for more thread options > > > > You have to draw lines somewhere. That's where Congress drew the line > this time. > At one time, eons ago it seems, they allowed deductions for taxes on > tobacco products and other items. ============== At one time you could even deduct liquor tax if the tax was levied in a certain way; i.e. on the consumer rather than the seller. Another favorite was the "pole" tax. There used to be a $ 1.50 State and 25¢ county poll tax in Texas. > > -- << ------------------------------------------------------- >> << 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 September 21, 2008, 12:58 pm Please log in for more thread options JoeSixPack wrote: > >> >> >> >> You have to draw lines somewhere. That's where Congress drew the line >> this time. >> At one time, eons ago it seems, they allowed deductions for taxes on >> tobacco products and other items. > ============== > At one time you could even deduct liquor tax if the tax was levied in a > certain way; i.e. on the consumer rather than the seller. > Another favorite was the "pole" tax. There used to be a $ 1.50 State > and 25¢ county poll tax in Texas. Are you speaking of deducting liquor tax on the federal return? If so, how long ago WAS that? Sounds like before my time. 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 D. Stussy on September 16, 2008, 4:13 pm Please log in for more thread options > Schedule A for Itemized Deductions contains lines for claiming state and > local income taxes, or general sales tax. Is there any way to get any > compensation for sales tax if you are claiming the state income tax? It's > a shame if no, since in some states the tax burden is heavy for both income > tax and sales tax. In effect there is a kind of discrimination at work on > this form against the resident of any state that balances the tax burden > across income tax and sales tax. No. It's one or the other. It was added to try to create some parity for those states where there is no state income tax. However, you're free to claim whichever of these two items is more. > Line 7 has a deduction for Personal Property Taxes. Reading the > instructions, I don't see any requirement that you be the owner of the > property. If you simply live in a residence owned by another person, and > you personally pay the property tax, can you claim it as a legitimate > deduction? No. You cannot deduct someone else's property tax. You may also have a gift tax issue should the amount be over $12k. > And in the big picture, I guess none of these deductions mean a whole lot > anyway, since they get backed out in the Form 6251 AMT calculation? It means alot to those NOT subject to AMT. -- << ------------------------------------------------------- >> << 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. >> << ------------------------------------------------------- >> Similar Threads Posted Two questions on deductions April 15, 2007, 1:42 pm Schedule C deductions April 1, 2008, 6:43 pm Where do I report dividends paid on Form 5471 Schedule C or Schedule F March 12, 2008, 9:23 am Schedule C or Form 4137 + Schedule U ? March 30, 2007, 4:35 am deductions and AMT December 28, 2006, 8:15 pm Missed deductions February 13, 2007, 1:49 am Top Ten Oddball Tax Deductions March 25, 2007, 12:26 pm Who takes the deductions? 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