Skip to main content
February 4, 2025
Question

How to itemize sales tax & excise tax on a new home? Paid 4.2% sales tax on materials to rural jobsite; 6.2% taxes on materials within the city; & 2% contr. excise tax.

  • February 4, 2025
  • 1 reply
  • 0 views
How do I itemize sales tax & excise tax paid on new home construction? As my agent, my builder paid 4.2% state sales tax on materials delivered to the rural jobsite; 6.2% state and city sales taxes on materials purchased within the city; & 2.0% state contractor excise tax on the cost of the entire project.

    1 reply

    February 4, 2025

    see B and C.  As to the contractor's 2% excise tax,  it may not qualify as a sales tax 

    taxes on schedule A are limited to $10K. That includes real estate and most other taxes except

    that you must choose between sales tax and state income tax if you have one

    3. A home (including a mobile home or prefabricated home)
    or substantial addition to or major renovation of a home, but only
    if the tax rate was the same as the general sales tax rate and any
    of the following applies.
    a. Your state or locality imposes a general sales tax directly
    on the sale of a home or on the cost of a substantial addition or
    major renovation.
    b. You purchased the materials to build a home or
    substantial addition or to perform a major renovation and paid
    the sales tax directly.
    c. Under your state law, your contractor is considered your
    agent in the construction of the home or substantial addition or
    the performance of a major renovation. The contract must state
    that the contractor is authorized to act in your name and must
    follow your directions on construction decisions. In this case, you
    will be considered to have purchased any items subject to a
    sales tax and to have paid the sales tax directly