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Can taxes from large purchases be deductible?

 
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3 Replies
LinaJ2018
Intuit Alumni

Can taxes from large purchases be deductible?

Yes, if you paid sales tax on large purchases, you might be able to take a deduction. Your refund will change only if your total sales tax deduction is more than the state income taxes and you are itemizing instead of taking the standard deduction. 

To enter the information in TurboTax online program, go to:

 1. After sign in and select Take me to my return 

2.  At the right upper corner, in the search box , type in sales tax then Enter 

3.  Select Jump to sales tax 

4.  On screen, Sales Tax and Income Tax - select Continue with Sales Tax

5.  On screen, How do you want to enter your sales tax info ? , select EasyGuide and follow the prompts.

ddrulard
New Member

Can taxes from large purchases be deductible?

I live in TN where the state sales tax is 7% however there is an additional 2.5% local sales tax also.  We purchased a boat during 2019 and paid $7,588.91 in sales tax.  Where I bought the boat they drop the local tax after a certain amount and the balance is taxed at only the state sales tax rate.  When I enter this using easy guide it tells me I cannot deduct this additional tax because it is less than the general tax rate of 9.5%  This does not seem right?  Any help would be appreciated. 

BillM223
Expert Alumni

Can taxes from large purchases be deductible?

"When I enter this using easy guide it tells me I cannot deduct this additional tax because it is less than the general tax rate of 9.5%"

 

Did TurboTax actually say that "I cannot deduct this additional tax because it is more than the general tax rate of 9.5%"?

 

That would be correct.

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