Tired of getting Taxes ready----grrrr---what about New Car Sales Tax---Deductible??

[#1 Cowboys Fan]

I have 'googled' it---most references go back to 2009, when the Stimulus gave a Tax Deduction for New Autos.

Fast forward to 2012----I paid over $1000 in Sales Tax for the new Honda.

Can I somehow get a tax Deduction?

Thanks,
Pat

 

[vacationhopeful]

Misunderstood the OP dates and deductions...

 

[SmithOp]

You write it off on Schedule A Itemized deductions, you can deduct the actual sales tax paid (in states that have it).

http://www.irs.gov/instructions/i1040sca/ar01.html

Actual Expenses

Generally, you can deduct the actual state and local general sales taxes (including compensating use taxes) you paid in 2012 if the tax rate was the same as the general sales tax rate. However, sales taxes on food, clothing, medical supplies, and motor vehicles are deductible as a general sales tax even if the tax rate was less than the general sales tax rate. If you paid sales tax on a motor vehicle at a rate higher than the general sales tax rate, you can deduct only the amount of tax that you would have paid at the general sales tax rate on that vehicle. Motor vehicles include cars, motorcycles, motor homes, recreational vehicles, sport utility vehicles, trucks, vans, and off-road vehicles. Also include any state and local general sales taxes paid for a leased motor vehicle. Do not include sales taxes paid on items used in your trade or business.

 

[bogey21]

I am in the process of doing my FIT on Turbo Tax. Because we have no State Income Tax in Texas, I am allowed to deduct the State Sales Tax on "Large Purchases" (specifically including a new car) plus the State Sales tax (estimated based on my income) for all other purchases. I assume this is the same for all states that don't have a State Income Tax.

I am not sure, but if I read the instructions properly, I think that in States that have both a State Income and State Sales Tax you have to choose which of the two to deduct.

George

 

[SmithOp]

I am in the process of doing my FIT on Turbo Tax. Because we have no State Income Tax in Texas, I am allowed to deduct the State Sales Tax on "Large Purchases" (specifically including a new car) plus the State Sales tax (estimated based on my income) for all other purchases. I assume this is the same for all states that don't have a State Income Tax.

I am not sure, but if I read the instructions properly, I think that in States that have both a State Income and State Sales Tax you have to choose which of the two to deduct.

George

Turbo tax should figure out the local taxes based on your zip code, and ask you if you had a major taxable purchase, it will figure out the rest.

You are correct there is a choice and you pick the larger deduction.