Sales Tax Deduction Itemized
March 21st, 2010
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Question: Where do I put the sales tax from my new car on my tax return?
Before I bought my car the salesman stated that I could deduct the sales tax I paid on it. Where would this go on my 1040? Do I have to itemize my deductions to claim this deduction? It was only like $1850 and I really dont have too many other deductions. If, so I guess I am better off taking the standard deduction.
Thanks.
I live in Texas, thus we have no state/local income tax, but I am going to be hard pressed to come up with $5000 in deductions.
Answer: It is reported on the Schedule A as an itemized deduction on Line 5, if you are itemizing you have a choice to claim State and Local Income Tax or Sales Tax but not both. If you are taking the Standard Deduction rather than Itemizing then you would not be able to claim the Sale Tax.
Publication 600
http://www.irs.gov/pub/irs-pdf/p600.pdf
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