Go Back   CDN Business Directory > Main Category > Taxes

 
 
Thread Tools Display Modes
  #4  
Old 01-20-2006, 09:54 PM
Harlan Lunsford
Guest
 
Posts: n/a
Default Re: Sales tax deduction for 2005 tax return

tfrieling[at]gmail.com wrote:

- quote -

> I am trying to figure out the rules regarding using the
> sales tax deduction instead of the income tax deduction. I
> bought a new SUV in November of 2005 and made a lot of
> improvements to my home during 2005 (about $32,000 in
> materials and furniture) I don't want to use the tables that
> the IRS gives and instead I want to use actual receipts for
> that sales tax deduction but I am unclear as to what I can
> deduct. Can I add up all the sales tax I paid for the year
> by going over all my receipts and bills for the 2005 year?
> does this include every possible thing I paid sales tax on
> in the 2005 year or are some items excluded. I know I can
> add up all of my remodeling, appliance and furniture
> receipts but can I also add up all my grocery store, gas
> station, fast food and any other little receipt I find? What
> about the taxes I on paid on my phone bill, cable bill or
> other monthly utility? I know the utilities might be a
> stretch but if I can include them every little bit will help
> me get a bigger refund.


Yes. Add 'em up; add 'em ALL up.
Head 'em up, and move 'em out!

ChEAr$,
Harlan Lunsford, EA n LA

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #3  
Old 01-20-2006, 09:35 PM
Bill
Guest
 
Posts: n/a
Default Re: Sales tax deduction for 2005 tax return

tfrieling[at]gmail.com posted:

- quote -

> I am trying to figure out the rules regarding
> using the sales tax deduction instead of the
> income tax deduction. I bought a new SUV in
> November of 2005 and made a lot of
> improvements to my home during 2005 (about
> $32,000 in materials and furniture) I don't want
> to use the tables that the IRS gives and
> instead I want to use actual receipts for that
> sales tax deduction but I am unclear as to
> what I can deduct. Can I add up all the sales
> tax I paid for the year by going over all my
> receipts and bills for the 2005 year? does this
> include every possible thing I paid sales tax on
> in the 2005 year or are some items excluded. I
> know I can add up all of my remodeling,
> appliance and furniture receipts but can I also
> add up all my grocery store, gas station, fast
> food and any other little receipt I find? What
> about the taxes I on paid on my phone bill,
> cable bill or other monthly utility? I know the
> utilities might be a stretch but if I can include
> them every little bit will help me get a bigger
> refund.


Remember you use different columns, based on your total
exemptions claimed, from the tables provided at the end of
the instructions for Schedule A.

You should recognize that you can use the optional table
_and also include specific taxes paid for unusual
expenditures for items such as a new car, boat, trailer or
remodeling materials for a big project_.

Given these facts, it seems likely that your life will be
enormously simplified if you simply use the table amount
allowed + the additional tax for the SUV (from the invoice)
+ additional taxes paid for the building materials.
furniture and appliances (from sales receipts).

The allowances seem reasonable, and given the ability to add
"large item" sales taxes ... my choice would always be to
forget the tedium of adding every receipt -- especially
since it's unlikely you've got them all, for the entire
year.

JMHO.

Bill

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #2  
Old 01-20-2006, 09:15 PM
Herb Smith
Guest
 
Posts: n/a
Default Re: Sales tax deduction for 2005 tax return

tfrieling[at]gmail.com wrote:

- quote -

> I am trying to figure out the rules regarding using the
> sales tax deduction instead of the income tax deduction. I
> bought a new SUV in November of 2005


Many states charge a higher rate for vehicle purchases. You
can only deduct up to the General Sales Tax rate for your
locality.

- quote -

> and made a lot of
> improvements to my home during 2005 (about $32,000 in
> materials and furniture) I don't want to use the tables that
> the IRS gives and instead I want to use actual receipts for
> that sales tax deduction but I am unclear as to what I can
> deduct. Can I add up all the sales tax I paid for the year
> by going over all my receipts and bills for the 2005 year?
> does this include every possible thing I paid sales tax on
> in the 2005 year or are some items excluded. I know I can
> add up all of my remodeling, appliance and furniture
> receipts but can I also add up all my grocery store, gas
> station, fast food and any other little receipt I find?


Anything that documents the sales tax you paid on the
purchase. Home improvements generally add to the basis of
your house, make sure that your basis adjustment does not
include the sales tax you are claiming. Generally, there is
no sales tax charged on gas purchases or groceries, but if
you bought other things (not uncommon in today's
supermarkets) that tax paid would be on your receipt.

- quote -

> What
> about the taxes I on paid on my phone bill, cable bill or
> other monthly utility?


Fugetaboutit. Those are specifically excluded under the tax
law.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #1  
Old 01-20-2006, 09:15 PM
Phil Marti
Guest
 
Posts: n/a
Default Re: Sales tax deduction for 2005 tax return

<tfrieling[at]gmail.com> wrote:

- quote -

> I am trying to figure out the rules regarding using the
> sales tax deduction instead of the income tax deduction. I
> bought a new SUV in November of 2005 and made a lot of
> improvements to my home during 2005 (about $32,000 in
> materials and furniture) I don't want to use the tables that
> the IRS gives and instead I want to use actual receipts for
> that sales tax deduction but I am unclear as to what I can
> deduct. Can I add up all the sales tax I paid for the year
> by going over all my receipts and bills for the 2005 year?
> does this include every possible thing I paid sales tax on
> in the 2005 year or are some items excluded. I know I can
> add up all of my remodeling, appliance and furniture
> receipts but can I also add up all my grocery store, gas
> station, fast food and any other little receipt I find?


Everything

- quote -

> What
> about the taxes I on paid on my phone bill, cable bill or
> other monthly utility? I know the utilities might be a
> stretch but if I can include them every little bit will help
> me get a bigger refund.


Most utility bills nowadays have a variety of taxes and fees
itemized. If you can find one that says it's sales tax, you
can include that amount. The others are not sales tax and
are not deductible.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
 
Old 01-20-2006, 09:15 PM
Bob Sandler
Guest
 
Posts: n/a
Default Re: Sales tax deduction for 2005 tax return

- quote -

> I am trying to figure out the rules regarding using the
> sales tax deduction instead of the income tax deduction. I
> bought a new SUV in November of 2005 and made a lot of
> improvements to my home during 2005 (about $32,000 in
> materials and furniture) I don't want to use the tables that
> the IRS gives and instead I want to use actual receipts for
> that sales tax deduction but I am unclear as to what I can
> deduct. Can I add up all the sales tax I paid for the year
> by going over all my receipts and bills for the 2005 year?


Yes.

- quote -

> does this include every possible thing I paid sales tax on
> in the 2005 year or are some items excluded.


Everything, as long as the tax was charged at the general
sales tax rate. (See IRS instructions for Schedule A line 5
for some special cases.)

- quote -

> I know I can
> add up all of my remodeling, appliance and furniture
> receipts but can I also add up all my grocery store, gas
> station, fast food and any other little receipt I find?


Yes, if the tax is shown separately on the receipt, and was
charged at the general sales tax rate. Gas stations
generally do not meet these requirements, but the other
places do.

- quote -

> What
> about the taxes I on paid on my phone bill, cable bill or
> other monthly utility?


Not all of the taxes on phone, cable, and utility bills are
sales tax. You can only deduct sales tax, and only if it is
shown separately on the bill and charged at the general
sales tax rate.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #-1  
Old 01-19-2006, 01:30 AM
tfrieling@gmail.com
Guest
 
Posts: n/a
Default Sales tax deduction for 2005 tax return

I am trying to figure out the rules regarding using the
sales tax deduction instead of the income tax deduction. I
bought a new SUV in November of 2005 and made a lot of
improvements to my home during 2005 (about $32,000 in
materials and furniture) I don't want to use the tables that
the IRS gives and instead I want to use actual receipts for
that sales tax deduction but I am unclear as to what I can
deduct. Can I add up all the sales tax I paid for the year
by going over all my receipts and bills for the 2005 year?
does this include every possible thing I paid sales tax on
in the 2005 year or are some items excluded. I know I can
add up all of my remodeling, appliance and furniture
receipts but can I also add up all my grocery store, gas
station, fast food and any other little receipt I find? What
about the taxes I on paid on my phone bill, cable bill or
other monthly utility? I know the utilities might be a
stretch but if I can include them every little bit will help
me get a bigger refund.

Thanks for the help!

Tim

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
 

Tags
2005, deduction, return, sales, tax
Similar Threads
Thread Forum Replies Last Post
Sales Tax deduction for all states?
hawks5999: When calculating your sales tax deduction using actual receipts, can you deduct sales tax paid outside your home state. Travelled quite a bit last...
Taxes 5 01-22-2005 05:30 PM
New State Sales-tax deduction.
jointhenlcpn@yahoo.com: Can you use credit card and debit card statements to calculate sales tax paid in 2004 or do you need actual sales receipts, I only became aware of...
Taxes 6 01-15-2005 06:42 PM
State Sales Tax Deduction
Andy: The new tax laws allowing people in states that have no income tax, such as Texas, to deduct the sales tax they paid, has raised a question, for...
Taxes 23 01-07-2005 04:47 PM
Deduction of state sales taxes
Arthur Kamlet: If I elect to deduct state and local sales taxes for 2004, and in early 2005 I receive a 2004 State Income tax refund on a 1099-G, is that refund...
Taxes 9 12-13-2004 11:04 PM
sales tax deduction
Joan Kaapke: I live in Texas and plan to itemize for 2004. I understand I may be able to deduct sales tax. I don't have receipts, so am wondering if there...
Taxes 30 11-12-2004 05:38 AM



Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

All times are GMT. The time now is 01:08 PM.