View Here : Sales Tax Deduction
How much sales tax can I deduct for a new car lease? I itemize my deductions. I leased a new vehicle in July 2017. My monthly payment includes sales tax of $24.53 (total of $149.58 for July - Dec).
SALES TAX. You can enter the sales tax you paid in 2017 by going to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax. Sales tax is an itemized deduction. If your state has a state income tax, you have to choose between using the deduction for your state tax paid OR the sales tax deduction, whichever is higher.
There is not a limit on your sales tax deduction. However, if you make too much money, there may be a phase-out (reduction of) your total itemized deductions based on your adjusted gross income. However, if you make too much money, there may be a phase-out (reduction of) your total itemized deductions based on your adjusted gross income.
If you read instructions for schedule A, you will see that IRS does not limit sales tax deduction only to large purchases. "Generally, you can deduct the actual state and local general sales taxes (including compensating use taxes) you paid in 2016 if the tax rate was the same as the general sales tax rate.
Claiming sales tax deduction. If I want to take the sales tax deduction, is there a way to estimate my total sales taxes for the whole year without going through individual receipts (which could be thousands!).
what items can be included in the sale tax deduction? There are lots of items taxed, but I am not sure if they fall under the sales tax category. I compiled 1200 transactions from my Mint.com, so I have a lot of questions.
You must itemize deductions, and your sales tax deduction, including the sales tax on the vehicle must exceed your state income tax. Realistically, in most states with a state income tax, the state income taxes would be higher than the state sales taxes, even with sales tax on a car added.
Under the new tax law, the SALT deduction (which is either state/local income tax plus property tax OR sales tax plus property tax) is capped at $5,000 for married couples filing separately and $10,000 for all other filers.
Keep in mind for tax years 2018 through 2025, the SALT deduction (which includes sales tax) is capped at $10,000. That means if the combined total of your sales tax, real estate tax, and personal property tax amounts to $15,000, you can only deduct $10,000 maximum.
State, local, property, and sales tax (SALT) deduction Under the new tax law, the SALT deduction is capped at $10,000 ($5,000 if married filing separately). Prior to that, there was no cap.