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October 31, 2023
Question

State sales tax deduction in Texas

  • October 31, 2023
  • 2 replies
  • 0 views

does the purchase of large generator to power an all-electric home during power outages qualify as large purchase to deduct sales tax on item and the fuel tank,system to run the generator.  Total cost more than a vehicle.

    2 replies

    Employee
    October 31, 2023

    SALES TAX

    You can enter the sales tax you paid in 2022 by going to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax.  

     

    Sales tax is an itemized deduction.  Itemized deductions have no effect on your refund or tax due unless you have enough itemized deductions to exceed your standard deduction.

     

     

    “Major purchases” that you can enter for the sales tax deduction include:

    Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles

    Aircraft or boats

    Mobile homes

    Manufactured housing

    Building materials for major home improvements

     

    You cannot deduct: furniture, jewelry, home electronics such as TV’s or computers

     

    https://ttlc.intuit.com/questions/1901222-which-deduction-should-i-choose-sales-tax-or-income-tax

    https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

    https://ttlc.intuit.com/questions/3148443-how-do-you-define-major-purchase-or-major-item-for-the-sales-tax-deduction

    https://ttlc.intuit.com/questions/1900791-how-do-i-find-my-local-sales-tax

    https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
    rjs
    Employee
    October 31, 2023

    It's a common misunderstanding that when you use the sales tax tables you can add the tax on "major purchases" or "large purchases" to the amount from the tables. This misunderstanding is perpetuated by TurboTax's use of the term "major purchases." What you are allowed to add, according to IRS rules, is the tax on "specified items." The specified items are a motor vehicle, an aircraft, a boat, a home, or a substantial addition to or major renovation of a home. This is a very simplified list. See the IRS instructions for Schedule A for details and limitations. But a generator is not a specified item, so you cannot add the sales tax on the generator to your deduction.