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Subject Author Date
Sales tax on condo purchase? Rick 02-13-2007
Posted by Rick on February 13, 2007, 6:00 pm
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 I am a Florida resident, and I understand we are allowed to
deduct Florida sales taxes on our 2006 federal income tax
returns. I have a mailing from the IRS with the tax tables,
and I understand how to take the deduction for the 6% state
sales tax and the .5% Orange County tax.

My question is this. During 2006, I purchased a condominium
in Alachua County, Florida as a second home for $155,000. I
paid $57,000 as a down payment and financed $97,000 at
6.125% with no points. Would there have been a sales tax
payment associated with this purchase? If so, would I be
allowed to deduct it in addition to the amount stated in the
IRS tables? Also, are there any other taxes associated with
the condo purchase that would normally be deductible?

In looking at my settlement papers on the purchase, I don't
actually see anything that explicitly says "sales tax". I
do see a section called "Government Recording and Transfer
Charges" which has the following:

City/county tax/stamps Deed $0 Mortgage $196.
State tax/stamps Deed $1085 Mortgage $343

Would any of these be deductible on my federal tax?

Aside from mortgage interest and property taxes, would any
other expenses normally associated with a condo purchase be
deductible? I thought there would also be an intangible tax
on the mortgage, but I don't see that spelled out on the
settlement papers either.

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Posted by Bill Brown on February 13, 2007, 11:26 pm
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> I am a Florida resident, and I understand we are allowed to
> deduct Florida sales taxes on our 2006 federal income tax
> returns. I have a mailing from the IRS with the tax tables,
> and I understand how to take the deduction for the 6% state
> sales tax and the .5% Orange County tax.
>
> My question is this. During 2006, I purchased a condominium
> in Alachua County, Florida as a second home for $155,000. I
> paid $57,000 as a down payment and financed $97,000 at
> 6.125% with no points. Would there have been a sales tax
> payment associated with this purchase? If so, would I be
> allowed to deduct it in addition to the amount stated in the
> IRS tables? Also, are there any other taxes associated with
> the condo purchase that would normally be deductible?
>
> In looking at my settlement papers on the purchase, I don't
> actually see anything that explicitly says "sales tax". I
> do see a section called "Government Recording and Transfer
> Charges" which has the following:
>
> City/county tax/stamps Deed $0 Mortgage $196.
> State tax/stamps Deed $1085 Mortgage $343
>
> Would any of these be deductible on my federal tax?
>
> Aside from mortgage interest and property taxes, would any
> other expenses normally associated with a condo purchase be
> deductible? I thought there would also be an intangible tax
> on the mortgage, but I don't see that spelled out on the
> settlement papers either.

No state I know of imposes its general sales tax on home
sales. It is the general sales tax that can be deducted
instead of state income taxes.

<< ======================================================= >>
<< 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 (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by scott s. on February 14, 2007, 10:02 pm
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> No state I know of imposes its general sales tax on home
> sales. It is the general sales tax that can be deducted
> instead of state income taxes.

Come to Hawaii and you can pay general excise tax on the
commission. AFAIK, the IRS treats the general excise tax as
the same as a sales tax, for purpose of this deduction, even
though the business/agent is liable for the tax, not the
customer.

Our weather is nice, though.

scott s.

<< ======================================================= >>
<< 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 (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by William Brenner on February 13, 2007, 11:26 pm
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Rick wrote:

> I am a Florida resident, and I understand we are allowed to
> deduct Florida sales taxes on our 2006 federal income tax
> returns. I have a mailing from the IRS with the tax tables,
> and I understand how to take the deduction for the 6% state
> sales tax and the .5% Orange County tax.
>
> My question is this. During 2006, I purchased a condominium
> in Alachua County, Florida as a second home for $155,000. I
> paid $57,000 as a down payment and financed $97,000 at
> 6.125% with no points. Would there have been a sales tax
> payment associated with this purchase? If so, would I be
> allowed to deduct it in addition to the amount stated in the
> IRS tables? Also, are there any other taxes associated with
> the condo purchase that would normally be deductible?
>
> In looking at my settlement papers on the purchase, I don't
> actually see anything that explicitly says "sales tax". I
> do see a section called "Government Recording and Transfer
> Charges" which has the following:
>
> City/county tax/stamps Deed $0 Mortgage $196.
> State tax/stamps Deed $1085 Mortgage $343
>
> Would any of these be deductible on my federal tax?
>
> Aside from mortgage interest and property taxes, would any
> other expenses normally associated with a condo purchase be
> deductible? I thought there would also be an intangible tax
> on the mortgage, but I don't see that spelled out on the
> settlement papers either.

Sales tax is not charged on the sale of Florida real estate.
Intangible tax on a mortgage? There never was such a thing
for the mortgagee; and the Florida intangible tax on
individuals has been abolished, thanks to former Governor
Jeb.

<< ======================================================= >>
<< 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 (2006) - All rights reserved. >>
<< ======================================================= >>

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