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Level 1
posted Apr 3, 2023 3:09:46 PM

When reporting deductible business expenses on Schedule C, can you include sales tax as part of the overall price of an item?

 I know you can choose to include sales tax as part of your itemized deductions on Schedule A. But if it's more advantageous to go with the Standard Deduction in your case, is it still ok to include sales tax as part of the overall price of a business expense on Schedule C?

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1 Best answer
Expert Alumni
Apr 3, 2023 3:21:02 PM

Yes.

 

When you enter your business expenses on Schedule C, you enter them, sales tax included (if you paid the tax to the supplier).

2 Replies
Expert Alumni
Apr 3, 2023 3:21:02 PM

Yes.

 

When you enter your business expenses on Schedule C, you enter them, sales tax included (if you paid the tax to the supplier).

Level 15
Apr 3, 2023 6:56:15 PM

sales tax on buusiness expenses is never reportible on schedule A. that can include sales tax of say a vehicle. but if the use isn't 100% business then the personal portion can go on schedule A for major items.