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Level 2
posted May 31, 2019 10:46:10 PM

Can I deduct the taxes I paid on a vacation rental in the general sales taxes (itemized deductions)?

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1 Best answer
Alumni
May 31, 2019 10:46:11 PM

Sorry, but you cannot if you're adding them to the IRS' sales tax tables. The IRS sales tax tables can have certain additions. These include:

  • a motor vehicle (including a car, motorcycle, motor home, recreational vehicle, sport utility vehicle, truck, van, and off-road vehicle
  • a leased motor vehicle.
  • an aircraft, boat, home (including mobile and prefabricated),
  • or home building materials, if the tax rate was the same as the general sales tax rate.

To do so, however, your state sales taxes still must exceed your state income taxes, as you can only deduct one or the other.

(Even if you itemize all sales taxes, they may not be deducible.  Rentals in vacation areas (such as in Florida) are often subject to an additional sales tax (referred to as "bed taxes").  If the vacation rental tax is higher than the general sales tax, it's not deductible.  (Vacation rental taxes are our way of taxing tourists rather than ourselves.  It's the modern day "taxation without representation.")

1 Replies
Alumni
May 31, 2019 10:46:11 PM

Sorry, but you cannot if you're adding them to the IRS' sales tax tables. The IRS sales tax tables can have certain additions. These include:

  • a motor vehicle (including a car, motorcycle, motor home, recreational vehicle, sport utility vehicle, truck, van, and off-road vehicle
  • a leased motor vehicle.
  • an aircraft, boat, home (including mobile and prefabricated),
  • or home building materials, if the tax rate was the same as the general sales tax rate.

To do so, however, your state sales taxes still must exceed your state income taxes, as you can only deduct one or the other.

(Even if you itemize all sales taxes, they may not be deducible.  Rentals in vacation areas (such as in Florida) are often subject to an additional sales tax (referred to as "bed taxes").  If the vacation rental tax is higher than the general sales tax, it's not deductible.  (Vacation rental taxes are our way of taxing tourists rather than ourselves.  It's the modern day "taxation without representation.")