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itemized sales tax deduction
Old 06-19-2005, 09:22 AM   #1
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itemized sales tax deduction

Last year we took the new standard sales tax deduction. We are not big spenders, so we should usually be well below the standard deduction. However, this year we are adding on and renovating our new house. We are planning to buy most of the materials ourselves and pay for labor separately. The sales tax on material cost will be thousands of dollars. Has anybody experience with itemizing sales tax and what detail is needed (record total amount only and keep receipt or do more?)

Vicky
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Re: itemized sales tax deduction
Old 06-19-2005, 02:02 PM   #2
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Re: itemized sales tax deduction

You are allowed to take a standard sales tax deduction, and add to that any big ticket items. A sales receipt showing the sales tax of the big ticket items should suffice. Keep it with your records, just like a charitable donation slip or business expense receipts. The forms, when I last looked at them, just had a 'total' box. But you will need to explain it with records if asked to do so.
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Re: itemized sales tax deduction
Old 06-19-2005, 04:34 PM   #3
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Re: itemized sales tax deduction

thanks. That is even a better deal - take both the standard and the big stuff on top. I thought it was for cars only, but glad to hear that this can also be included

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Re: itemized sales tax deduction
Old 06-19-2005, 05:12 PM   #4
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Re: itemized sales tax deduction

Read the IRS stuff on this, I believe it said 'any large ticket unusual items' or somesuch. My inlaws deducted the sales tax on their motor home.
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Re: itemized sales tax deduction
Old 06-20-2005, 07:52 AM   #5
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Re: itemized sales tax deduction

Here is the publication with instructions on what you can do: http://www.irs.gov/pub/irs-pdf/p600.pdf
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Re: itemized sales tax deduction
Old 06-20-2005, 02:04 PM   #6
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Re: itemized sales tax deduction

And that publication includes adding the sales tax for building materials to the base allowed amount. Looks like you're good to go. The list of stuff you can add is smaller than I recall though...mostly motor toys (cars, boats, planes) and a few others.
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