Like Tree0Likes

Sales tax/tax deduction question

Reply
Old 06-22-2009, 10:11 AM
  #1
Gold Member
Gold Member
Thread Starter
 
neva satisfied's Avatar
 
Join Date: Aug 2005
Location: Maine
My Boats: Donzi
Posts: 340
Default Sales tax/tax deduction question

I know this has probably been beat to death before but I'm going to ask anyway. I know that if you finance a boat and it quallifies for a second home you can deduct the interest. Here's my question. If the sales tax was not financed into the loan, can any portion of the sales tax be deducted like closing costs on a home morgage or property taxes on a primary or secondary home? Part two of my question is how about slip rentals? Can any of that be deducted?

Thanks
neva satisfied is offline  
Reply With Quote
Old 06-22-2009, 12:38 PM
  #2
Charter Member # 55
Charter Member
 
Griff's Avatar
 
Join Date: Oct 2000
Location: Omaha
My Boats: .......32............. ...............Active Thunder....
Posts: 15,752
Default

You can deduct all your sales tax on everything on your federal income taxes instead of using your state income tax deduction.

Slip rental?????? Not that I know of, unless it related to a business expense.
Griff is offline  
Reply With Quote
Old 06-22-2009, 12:48 PM
  #3
Gold Member
Gold Member
 
seafordguy's Avatar
 
Join Date: Jun 2006
Location: Seaford, VA
My Boats: Cigarette - Cafe Racer
Posts: 3,683
Default

Quote:
Originally Posted by Griff View Post
You can deduct all your sales tax on everything on your federal income taxes instead of using your state income tax deduction.

Slip rental?????? Not that I know of, unless it related to a business expense.
But it is in-lieu of a standard deduction that you are granted for Sales Tax - so it depends on how much you have "bought" throughout the year....

I know that for me, it wasn't worth it last year, but I didn't have any big purchases throughout the year....
seafordguy is offline  
Reply With Quote
Old 06-22-2009, 03:09 PM
  #4
Gold Member
Gold Member
Thread Starter
 
neva satisfied's Avatar
 
Join Date: Aug 2005
Location: Maine
My Boats: Donzi
Posts: 340
Default

Quote:
Originally Posted by Griff View Post
You can deduct all your sales tax on everything on your federal income taxes instead of using your state income tax deduction.
Quote:
Originally Posted by Griff View Post
Slip rental?????? Not that I know of, unless it related to a business expense.
Can you elaborate a littler more on the federal deduction part?
neva satisfied is offline  
Reply With Quote
Old 06-22-2009, 03:14 PM
  #5
Registered User
 
Join Date: Jan 2007
Location: Mansfield, TX
My Boats: 1990 28 Apache SOLD!, 1990 16 Wahoo DC, 1973 40 Kingscraft
Posts: 5,701
Default

Quote:
Originally Posted by seafordguy View Post
But it is in-lieu of a standard deduction that you are granted for Sales Tax - so it depends on how much you have "bought" throughout the year....

I know that for me, it wasn't worth it last year, but I didn't have any big purchases throughout the year....
That is incorrect. Sales tax for "Major purchases" are added to the standard sales tax deduction. Boat's, cars, and RV's qualify as "major purchases" (i.e. you get the standard sales tax deduction PLUS sales tax paid on "major purchases")
TexomaPowerboater is offline  
Reply With Quote
Old 06-22-2009, 04:02 PM
  #6
Gold Member
Gold Member
Thread Starter
 
neva satisfied's Avatar
 
Join Date: Aug 2005
Location: Maine
My Boats: Donzi
Posts: 340
Default

I'll tell you what, this is a learning experience for me. I have never heard or even thought of trying to deduct the sales tax off one of my cars or trucks. How many years back can I go? Further more, what sort of paper work do I need to do this on my boat that I"m going to buy?

Last edited by neva satisfied; 06-22-2009 at 04:05 PM.
neva satisfied is offline  
Reply With Quote
Old 06-22-2009, 04:16 PM
  #7
Gold Member
Gold Member
 
seafordguy's Avatar
 
Join Date: Jun 2006
Location: Seaford, VA
My Boats: Cigarette - Cafe Racer
Posts: 3,683
Default

Quote:
Originally Posted by TexomaPowerboater View Post
That is incorrect. Sales tax for "Major purchases" are added to the standard sales tax deduction. Boat's, cars, and RV's qualify as "major purchases" (i.e. you get the standard sales tax deduction PLUS sales tax paid on "major purchases")
AH....didn't know that.

There is a reason I am not a tax accountant....
seafordguy is offline  
Reply With Quote
Old 06-22-2009, 04:20 PM
  #8
Registered
 
Join Date: Jul 2004
Location: Palm Harbor, FL
My Boats: Fountain 34CC, Boston Whaler 15 Sport
Posts: 438
Default

For paperwork you just need a copy of your purchase agreement to get the amount of tax paid and the deduction goes on your schedule A. For how far back, I believe the tax code was changed around 5 years ago.
Loan Ranger is offline  
Reply With Quote
Old 06-22-2009, 05:05 PM
  #9
Charter Member # 55
Charter Member
 
Griff's Avatar
 
Join Date: Oct 2000
Location: Omaha
My Boats: .......32............. ...............Active Thunder....
Posts: 15,752
Default

Quote:
Originally Posted by neva satisfied View Post
[COLOR="Red"]

Can you elaborate a littler more on the federal deduction part?

Its on the Schedule A Itemized Deductions. You can choose to either deduct your state income tax paid or use the general sales tax you paid.

Line 5 http://www.irs.gov/pub/irs-pdf/f1040sab.pdf

Last edited by Griff; 06-22-2009 at 05:08 PM.
Griff is offline  
Reply With Quote
Reply



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 On
Pingbacks are On
Refbacks are On



All times are GMT -5. The time now is 11:13 AM.


Copyright 2011 OffShoreOnly. All rights reserved.