and my last contribution to this thread before my tax advisor appointment.

WSJ "Can I Deduct Sales Tax on a Car?"
http://online.wsj.com/article/SB1000...880410442.html

 

^^ mine too. From your link:

Here is how it works: You generally are allowed to deduct state and local general sales taxes that you paid last year, instead of your state and local income taxes, as an itemized deduction on Schedule A of Form 1040. But you can't deduct both your sales-tax payments and your state and local income taxes, says Bob Meighan, a vice president at Intuit's TurboTax, the nation's top-selling tax-preparation software.

I pay much more state tax than I do sales tax.....

 

Also from your link, also explains why Karl can deduct... (Sorry Karl):

The option of deducting sales taxes is especially popular in Florida, Texas, Nevada, Washington and other states that don't have their own income tax. But you don't have to live in those states to be eligible for this option. Many people who live in other states and who itemize their deductions may find it advantageous to deduct their sales taxes instead of state and local income taxes.

 

I was able to deduct the sales tax on the purchase of my v8 last year. The reason myself and a few others can do it is due to where we live. I am in Texas and we have no state income tax. My friends in Tennessee, Washington and Florida can do the same thing. In CA you have state income taxes which are thus used as a deductible against your federal taxes. Our glorious President Bush from the great state of TX decided years ago this was unfair to those in non income state tax states like TX and FL (consequently where Jeb Bush, his bro, was gov) so he and the republicans added a provision to the tax law, that was made permanent this morning, whereby us poor heathens can deduct state sales tax from our federal income taxes. All I can say is SCORE!

 

We were able to deduct, on our 2010 federal return, the Michigan Sales Tax that we'd payed on the first $50k of a new Range Rover that my wife had purchased that year.

Not sure if it was a special measure for that year only, but I know it only applied to new vehicle purchases not second hand, and that the deduction value was capped at a $50k calculation - even if the vehicle cost a lot more.

FF

 

^^was the LR bought and claimed as biz use?

 

uuuuuugggggghhhhhh

This is all making my spine hurt.

I started the year living and working in CA. Then I moved to FL and bought my V8V. How much do y'all want to bet that my CA state income tax and my FL sales tax come out to a dead even wash? Seems like I should be allowed to take both (though I'm betting I won't be allowed to).

And for my part, I'm happy for the complicated nature of this business. I embrace the complexities and find a path. You want simple? Use the short form. As with most things, you get what you pay for. At tax season, the simplicity of the short form comes at the price of what you could have saved. Too bad, so sad.

 

Hi LRDog,
Nope, it was private purchase and use in my wife's name.

FF

 

I have used TurboTax for several decades. For FL residents, it calculates a standard sales tax amount you can deduct based on your income level. Or you can choose to itemize your sales tax deductions if they were higher than the standard. Obviously, the year I bought the V8V, itemizing was much better. Nothing illegal about it.

 

I know, see the posts after the one you quoted.....

 

Claiming sales tax deductions, lucky lol...tax law obviously varies from state to state whats the ruling in CA where OP is located?

Karl we better see louis Voutton interior fabric and a full Vantage interior makeover after this years return buddy

 

I'm only planning on using the sales tax deduction on my federal return and not my California return (where my tax will break even). After more research, it's a little more clear. For my federal return, since I am itemizing and not choosing my applicable standard deduction ($5,950), I will itemize using my new mortgage interest and points and property taxes, plus I can include either choose my state income taxes paid or my state sales tax paid to my itemize deduction total.

Since the sales tax paid on my Aston, Ducati and other large/major expenses I purchased in 2012 and kept receipts on, is more than double my state income tax paid for the year, I will choose the state sales tax paid as the option to add to my total itemized deductions.

However in 2010, there was on exception where you could add the sales tax amount of a new car to your standard deduction, which would have given you an overall greater deduction. This is no longer applicable and if you chose to use sales tax you must itemize and not go standard deduction.

Whew... Confused yet? LOL

Another article for light reading:
http://www.foxbusiness.com/personal-...tax-deduction/