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January 29, 2024
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bought mobile home in FL

  • January 29, 2024
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bought a mobile home in FL I paid 4000 in sales tax I live in NJ I am using it for a vacation home can I deduct that 4000 in sales tax if yes where do I put it

    Best answer by Vanessa A

    Yes, you can claim it on your federal return if you itemize your expenses instead of taking the standard deduction.  Itemized expenses include mortgage interest, state and local taxes up to $10,000, medical expenses in excess of 7.5% of your AGI and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss.  Your health insurance and all medical expenses are only deductible for the amount that is over 7.5% of your AGI.  This means if your AGI is $50,000, then the amount that is over $3,750 is deductible.  

     

    Then your total itemized expenses would need to be greater than your standard deduction below in order to benefit from your insurance premium payments. 

     

    The 2023 Standard Deductions are as follows:

    • Married Filing Joint (MFJ)              $27,700
    • Married Filing Separate (MFS)      $13,850
    • Head of Household (HOH)             $20,800 
    • Single                                                     $13,850                                

    Blind and MFJ or MFS add $1,500

    Single or HOH if blind add $1,850

     

    You cannot take a deduction for it on your NJ return. 

     

    To Itemize your return, you would select Federal>>Deductions and Credits>>then walk through the deductions and credits section to be sure you get the most itemized deductions.  The sales tax specifically will go under Cars and Other things you own in the Personal Property Taxes tab. 

    1 reply

    Vanessa AAnswer
    January 29, 2024

    Yes, you can claim it on your federal return if you itemize your expenses instead of taking the standard deduction.  Itemized expenses include mortgage interest, state and local taxes up to $10,000, medical expenses in excess of 7.5% of your AGI and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss.  Your health insurance and all medical expenses are only deductible for the amount that is over 7.5% of your AGI.  This means if your AGI is $50,000, then the amount that is over $3,750 is deductible.  

     

    Then your total itemized expenses would need to be greater than your standard deduction below in order to benefit from your insurance premium payments. 

     

    The 2023 Standard Deductions are as follows:

    • Married Filing Joint (MFJ)              $27,700
    • Married Filing Separate (MFS)      $13,850
    • Head of Household (HOH)             $20,800 
    • Single                                                     $13,850                                

    Blind and MFJ or MFS add $1,500

    Single or HOH if blind add $1,850

     

    You cannot take a deduction for it on your NJ return. 

     

    To Itemize your return, you would select Federal>>Deductions and Credits>>then walk through the deductions and credits section to be sure you get the most itemized deductions.  The sales tax specifically will go under Cars and Other things you own in the Personal Property Taxes tab. 

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