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Are the only items that can be claimed as major purchases vehicles? I see where I can input the cost and sales tax of the two vehicles I bought, but what about my ring?

The ring was $15,000. Of course I paid almost as much sales tax as if it were a car. Can I not claim that?
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6 Replies

Are the only items that can be claimed as major purchases vehicles? I see where I can input the cost and sales tax of the two vehicles I bought, but what about my ring?

Sorry, jewelry is not included as one of the Major Purchase items.

Only -

- Motor vehicles (motor homes, recreational vehicles, sport utility vehicles, and off-road vehicles)

- Aircraft or boats

- Your home, substantial home addition, or major home renovation if:

a) Your state or locality charges tax on the sale of a home, the cost of a substantial home addition, or the cost of a major home renovation, or

b) You purchased and paid sales tax on the materials to build a home, build a substantial home addition, or perform a major home renovation.

Are the only items that can be claimed as major purchases vehicles? I see where I can input the cost and sales tax of the two vehicles I bought, but what about my ring?

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2020 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.  If your state has a state income tax, you have to choose between using the deduction for your state tax paid OR the sales tax deduction, whichever is higher.  The TT process will suggest one or the other as you prepare your return.

“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/3148443-how-do-you-define-major-purchase-or-major-item-for-the-sal...

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

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Are the only items that can be claimed as major purchases vehicles? I see where I can input the cost and sales tax of the two vehicles I bought, but what about my ring?

You can deduct sales tax on the ring if you use the exact amount method. You may deduct the exact amount of sales tax you paid during the year and that you can prove with your receipts or records.  If you use the standard amount method, which assigns a standard sales tax deduction based on your income, then the only thing you can add to it is, as described by others, a motor vehicle, airplane, or your home or substantial renovation to your home.  The ability to add “major purchases“ is an unfortunate misnomer.

Are the only items that can be claimed as major purchases vehicles? I see where I can input the cost and sales tax of the two vehicles I bought, but what about my ring?

sales tax on the ring is probably more than the "standard sales tax" amount.

you can deduct any amounts for which you have the receipts showing sales tax paid.

If you do that you don't include the "standard sales tax"

Are the only items that can be claimed as major purchases vehicles? I see where I can input the cost and sales tax of the two vehicles I bought, but what about my ring?

is a kitchen remodel considered major rennovation?

DawnC
Expert Alumni

Are the only items that can be claimed as major purchases vehicles? I see where I can input the cost and sales tax of the two vehicles I bought, but what about my ring?

It can be.   You can deduct Building Materials for a major renovation or substantial addition to a home, if you paid the general sales tax rate yourself or your contractor was authorized to purchase these materials per your instructions or building contract.  @melindaziemann 

 

Sales Tax Deduction on Home Renovation

 

See IRS - Sales Tax - major renovation.  

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