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carlson-dfc
New Member

I paid $433 in taxes on a boat purchase and live in MN. Can I benefit from reporting this on my taxes?

 
1 Best answer

Accepted Solutions
Texas Roger
Level 15

I paid $433 in taxes on a boat purchase and live in MN. Can I benefit from reporting this on my taxes?

The sales tax paid on a boat can be deducted if the following is true:

1. You itemize deductions rather than taking the standard deduction.

2. You take the sales tax deduction rather than the state income tax deduction (if your state has an income tax)

You can enter the sales tax paid on the boat as a major purchase when entering the sales tax. It is added to the general sales tax table amount.

Type sales tax in the search box and click on jump to sales tax. Use the Easy Guide, enter the information for the places you lived. After entering the sales tax rate the next screen will let you enter the sales taxes paid for a major purchase which is your boat.


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1 Reply
Texas Roger
Level 15

I paid $433 in taxes on a boat purchase and live in MN. Can I benefit from reporting this on my taxes?

The sales tax paid on a boat can be deducted if the following is true:

1. You itemize deductions rather than taking the standard deduction.

2. You take the sales tax deduction rather than the state income tax deduction (if your state has an income tax)

You can enter the sales tax paid on the boat as a major purchase when entering the sales tax. It is added to the general sales tax table amount.

Type sales tax in the search box and click on jump to sales tax. Use the Easy Guide, enter the information for the places you lived. After entering the sales tax rate the next screen will let you enter the sales taxes paid for a major purchase which is your boat.


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