- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Can I deduct taxes paid on purchase of a new car and boat?
I purchased a new car as well as a new boat in 2015. I live in PA. Can I deduct the taxes I paid at time of purchase for either of these? Boat is not considered a livable boat.
Topics:
June 3, 2019
12:01 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
Sales tax paid may be deductible on either purchase, but this is usually only a benefit in states that do not have a state income tax as only the higher of the two is deductible. Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming don't levy an income tax. Even though Pennsylvania is not on that list, you may choose to enter the information and TurboTax will calculate which deduction is better for you.
To enter sales tax in to TurboTax:
- Click the Federal Taxes tab at the top (or the Personal tab if using Home & Business)
- Then, Deductions & Credits
- Scroll down to the "Estimates and Other Taxes Paid section", click Show more
- Next to "Sales Tax" click Start or Update
- Follow the interview screens to input this information
June 3, 2019
12:01 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
My program currently show me at Itemized deductions being the best bet. I just don't want to enter tax I paid for the purchase of both if it is not allowed.
June 3, 2019
12:01 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
It is allowed. Most users do not benefit if their state charges an income tax. However, since you have two big-ticket items, their sales tax may exceed your state's.
June 3, 2019
12:01 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
Nevermind. I see what you were saying. My taxes paid were less than the income tax deductions. Thank you
June 3, 2019
12:01 PM