What does a sales tax apply to?

The IRS gives you the option of taking the Sales Tax Deduction or State Income Tax. Since not every state has income tax, this is a way to get a deduction. This is taken on Schedule A.

The deduction is based on the amount of income and the sales tax rate in your state. There may be an additional amount if your city also charges an amount over what the state charges.

You are also allowed to take an extra amount for major purchases such as cars.

Common major purchases include:

• Vehicles
• Off-road vehicle

You can also include:

• Aircraft
• Boats
• Mobile homes
• Manufactured housing
• Building materials for major home improvements