Cynthiad66
Expert Alumni

Deductions & credits

Based on the additional information you provided, the answer provided by Leonard Smith is correct. "sales tax can not be spread out proportionally with your installment payments.  Sales tax can only be deducted as an expense in the year they are paid or added to the basis of capital items/equipment."   Also, it is when it is paid by you not the seller.  In other words, when you purchased the property and sales taxes are included in the sale, it is considered paid by you on that date.

 

@JohnFremont

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