The IRS Deductions Blog

Archive for the ‘Sales Tax Deductions’ Category

Items on Amazon Right Now for Car Sales Tax Deduction Lease:

Calculating Taxes : How to Calculate Taxes for Hobby Expenses & Income

Items on Amazon Right Now for Sales Tax Deduction Worksheet:

Tax Tip: 6 facts about choosing the standard or Itemized Deductions

When filing your federal income tax return, taxpayers can choose to either take the standard deduction or to itemize their deductions. The IRS has put together the following six facts to help you choose the method that gives you the lowest tax.

Question: I bought my mom a car as a gift, although it was titled in her name. Can I deduct the sales tax on my taxes?

I made the check payable to the dealer for the amount of the car; however, the dealer listed her as the “buyer” on all the paperwork. She does not itemize, so the sales tax deduction is worthless to her. It’s a gift to her either way, but could I construe the gift as being the car (since I made the check payable to the dealer) versus the money?

Answer: Had you bought the car in your name and then gifted it, you would have a deduction. It sounds however that you gifted the deduction to her.
The result may be true, but it also seems unfair as a result of a technicality.
You may a case for claiming the deduction, but it isn’t a strong one. You could try, and if you get examined, just cave in. If you don’t get examined, then you win.
The above advice is solely because I think you have a case. Otherwise, I would not recommend it. Just so you understand I’m not trying to cross any lines, just resolving doubt in your favor.

Items on Amazon Right Now for Sales Tax Deduction For Car Buyers:

West Fraser Announces Fourth Quarter Results and Increased Dividend

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Feb. 17, 2011) – West Fraser Timber Co. Ltd. (TSX:WFT) today reported earnings after discontinued operations of $39 million or $0.89 per share on sales of $719 million in the fourth quarter of 2010 and earnings after discontinued operations of $166 million or $3.84 per share, on sales of $2,886 million for 2010. “

Used Car Donation : How to Donate a Car in the NYC Area

Question: Can someone explain the state sales tax deduction to me?

I live in PA, where they do take out income tax. I bought a car though in December, and I got a record from the state that lists those taxes. So what are my options here? Could it really save me money tax return time? Is this a federal or state thing?
PS it is not a brand new car, its a 2007 so i know that federal tax break doesn’t apply. I’m asking more about for state taxes
I am confused because changing the amount in my state taxes in trying to compare income vs sales, I get nothing different…the return stays the same..is this a state issue?

Answer: The American Recovery and Reinvestment Act permits taxpayers to take a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles. The deduction is available on new vehicles purchased from Feb. 17, 2009, through Dec. 31, 2009. In states that don’t have a sales tax, the law provides a deduction for other taxes or fees paid. This deduction is available whether or not a taxpayer itemizes deductions on Schedule A.

The deduction is limited to the taxes and fees paid on up to $49,500 of the purchase price of an eligible vehicle. The deduction is reduced for joint filers with modified adjusted gross incomes (MAGI) between $250,000 and $260,000 and other taxpayers with MAGI between $125,000 and $135,000. Taxpayers with higher incomes do not qualify.

Taxpayers who make qualifying new vehicle purchases this year can estimate the deduction with the help of IRS Publication 919, How Do I Adjust My Withholding? Lines 10a to 10k on Worksheet 10 take into account purchases above the $49,500 limit, as well as the reduced deductions for taxpayers at higher income levels.

.

Items on Amazon Right Now for Sales Tax Deduction Taxes:

How much will I owe IRS next April?

Taxpayers have a right to know and plan their tax obligation to their government. Withholding tabl

Items on Amazon Right Now for New Car Sales Tax Deduction Lease:

SELWESKI: To all Volt critics: Just shut up

The Chevy Volt has not only proven to be a game changer in the auto industry, in the political arena it has exposed bitter partisanship on the far right that borders on un-American.