Is this a bug? The 6.5% sales tax in FL only applies to the first $5,000. The amount above $5,000 is taxed at 6%. As a result the % calculated based on taxes paid and purchase prices over $5,000 will be less than 6.5%. Is this the reason TurboTax does not allow the deduction. How can I get TurboTax to allow the deduction?
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When the program asks for a %, leave it blank or enter you standard local rate. Enter actual dollar amount paid from your receipts for major purchases.
To verify if an item does qualify as a major purchase in the eyes of the IRS, see line 7 for the rules which include motor vehicle, plane, boat, or home. Things like jewelry and furniture don't count.
It's a bug.
Turbotax software has a big issue in this spot.
I am denied my major purchase tax deduction because it does not match my local taxes. Except that it does - turbotax returns the tax rate on my major purchase so I can confirm that part is correct AND that it matches my local tax rate.
It doesn't matter if I enter the tax rate and make it the same as my local, or if I leave it blank.
Please correct this. Please stop telling users that nothing is wrong. There is an error in the code.
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