I made a car purchase in 2022. Let's say the total price was $100,000 + $8,380 (sales tax) =$108,380. A down payment of $40,000 was made at the time of purchase. The rest was financed with a monthly payment of roughly $1000 per month.
I am trying to do itemized deduction and the car is for personal use. To calculate the sales tax paid, would I just do $40,000 x 8.38% and the number will be the sales tax paid? What about the monthly loan payment? How do you calculate the sales tax paid in that?
Thanks in advance!
Do you not have an invoice from the car purchase that shows the sales tax paid?
you answered your own question.
"$8,380 (sales tax) "
you can add this amount to the general sales tax amount generated by TurboTax.
There's no sales tax on financed car payments.
SALES TAX
You can enter the sales tax you paid for the car you purchased in 2022 by going to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax. You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your new vehicle.
Sales tax is an itemized 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/1900791-how-do-i-find-my-local-sales-tax
https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year
The invoice does not specifically state how much I paid for the sales tax (it does list the total sales tax). It shows the grand total minus the down payment and the amount financed (and the monthly payment).