Question

Sales Tax Big Ticket Item Deduction

Forum|Forum|5 years ago
February 11, 2021
1 reply
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I live in Texas and purchased a truck and a boat in 2020. When I went in to enter both items TurboTax said I could not take the deduction for the boat sales tax because it was 6.25% and I pay an 8.25% rate where I live. Texas only charges 6.25% on cars and boats and it allowed me to take the deduction for the truck but not the boat. The boat was far more then the truck was and basically it is not allowing me to write of almost $2700 of sales tax from that 1 transaction. is there a reason why or anything I can do in order to receive that deduction?

Thank you ahead of time.

Adam

AmyC

Employee

You can deduct sales tax paid. The IRS will limit all state and local income taxes paid to $10,000 on your return. The program will do that internally. If you spent $15,000 on trucks, boats, groceries, etc then enter the full amount in the program.

I recommend you:

Go back to the Personal Deductions and Credits.
Go back to the sales tax.
Edit/Update
How do you want to enter your info? Select enter all my receipts
Total sales tax paid, enter your one big total for the full amount for boat, truck and other items throughout the year.
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We've chosen a deduction for you, the amount you entered
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