Don't forget that for 2004 and 2005, you now have the option of deducting either your state income tax or sales tax, whichever is greater. The IRS will provide sales-tax tables. You can add any tax paid on cars, rvs, and boats to the table amounts. Alternatively, you can deduct the actual state and local sales tax paid -- if you can substantiate that amount.
This is a great break for those who live in no income tax states like Alaska, Florida, Nevada, South Dakota, Washington and Wyoming. Or low tax states like Tennessee.
Or if you are retired and have little income but spent a lot.
Hey, I spent the weekend working on taxes with my DH. Almost done. Not fun at all.
__________________
.
Do not rely on the information provided--my posts are not to be taken as legal advice. Needless to say you must consult with your legal representative. I am not responsible for errors. If I offended you with cya I apologize. If I did not, I tried.
|