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Subject Author Date
Sales tax deduction for major purchase richardstartz 03-24-2008
Posted by richardstartz on March 24, 2008, 7:15 pm
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 I have a couple of major confusions about deducting sales taxes on
major purchases on 2007 US Income tax (in addition to the general
sales tax deduction.) I'm not sure if I really have a TurboTax
question or a question about the tax code. The issue begins with me
having had two remodels: one on my primary residence and one on a
second home.

(1) The IRS web site (document FS-2006-9, January 2006) says you
deduct sales tax on "major renovation of a home," but TurboTax says
you can deduct sales tax on "building materials." These are pretty
different. Which is right?

(2) I live in Washington State, which the general sales tax differs
from county to county. I understand you cannot deduct a major purchase
if the sales tax is not at the general rate. But I paid different
general rates in different counties and TurboTax won't let me deduct
items at different rates.

Any advice would be much appreciated.

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Posted by GSalisbury on March 24, 2008, 9:07 pm
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>I have a couple of major confusions about deducting sales taxes on
> major purchases on 2007 US Income tax (in addition to the general
> sales tax deduction.) I'm not sure if I really have a TurboTax
> question or a question about the tax code.
<snip>
<snip>
TurboTax won't let me deduct items at different rates.
>
> Any advice would be much appreciated.
>
I use TaxCut but have to believe TC and TT would be pretty similar in this
regard...
Taxcut, it appears, will let me modify the Schedule A and it's worksheet
directly if I so desired.
I would think that so too would TT, in which case, you can resolve the rate
differences manually by totals and keeping your [good] records handy.
Just a thought on the entry process.
Geo.

--
<< ------------------------------------------------------- >>
<< 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 richardstartz on March 24, 2008, 10:56 pm
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On Mon, 24 Mar 2008 21:07:42 EDT, "GSalisbury"

>
>>I have a couple of major confusions about deducting sales taxes on
>> major purchases on 2007 US Income tax (in addition to the general
>> sales tax deduction.) I'm not sure if I really have a TurboTax
>> question or a question about the tax code.
><snip>
><snip>
>TurboTax won't let me deduct items at different rates.
>>
>> Any advice would be much appreciated.
>>
>I use TaxCut but have to believe TC and TT would be pretty similar in this
>regard...
>Taxcut, it appears, will let me modify the Schedule A and it's worksheet
>directly if I so desired.
>I would think that so too would TT, in which case, you can resolve the rate
>differences manually by totals and keeping your [good] records handy.
>Just a thought on the entry process.
>Geo.

A good suggestion. I'll do that, thanks.
(Now i just have to figure out about the rules part.)
-Dick

--
<< ------------------------------------------------------- >>
<< 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 Tom Russ on March 25, 2008, 2:16 pm
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On Mar 24, 4:15 pm, richardsta...@comcast.net wrote:

> (2) I live in Washington State, which the general sales tax differs
> from county to county. I understand you cannot deduct a major purchase
> if the sales tax is not at the general rate. But I paid different
> general rates in different counties and TurboTax won't let me deduct
> items at different rates.

By chance I accidentally ended up in that part of TurboTax last night.

The interview may not cover this case, but if you go to the forms
view, IIRC there is a table for multiple entries of state + local
sales tax rates that you can use to enter this information. But you
need to do it from the forms page.

--
<< ------------------------------------------------------- >>
<< 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 richardstartz on March 25, 2008, 6:54 pm
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>On Mar 24, 4:15 pm, richardsta...@comcast.net wrote:
>
>> (2) I live in Washington State, which the general sales tax differs
>> from county to county. I understand you cannot deduct a major purchase
>> if the sales tax is not at the general rate. But I paid different
>> general rates in different counties and TurboTax won't let me deduct
>> items at different rates.
>
>By chance I accidentally ended up in that part of TurboTax last night.
>
>The interview may not cover this case, but if you go to the forms
>view, IIRC there is a table for multiple entries of state + local
>sales tax rates that you can use to enter this information. But you
>need to do it from the forms page.

I will do that . Thanks.
-Dick

--
<< ------------------------------------------------------- >>
<< 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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