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posted Oct 31, 2023 12:15:58 PM

State sales tax deduction in Texas

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.

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2 Replies
Level 15
Oct 31, 2023 12:37:06 PM

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

Level 15
Oct 31, 2023 2:51:27 PM

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.