Can I deduct the sales tax amount for the full 3 year lease term or just whatever incurred in this tax year?
One may only deduct either sales tax or income tax, whichever is higher. So, deducting sales tax is usually only a benefit for someone who resides in a state that does not charge an income tax. TurboTax will calculate the best option for you so all guess work is eliminated.
Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming don't levy an income tax.
However, depending on your specific tax situation, either could be most beneficial. You may enter the sales taxes paid on major items and TurboTax will see if that outweighs the alternative deduction (income taxes).
To enter sales tax in to TurboTax:
For more information on which deduction is right for you, please see this TurboTax FAQ: