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Deduction of sales tax for building materials for new fence

Paid someone to build a fence last year to perimeter of our second home. Can I deduct sales tax I paid associated with the cost of the building materials?

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1 Reply
TomK2023
Employee Tax Expert

Deduction of sales tax for building materials for new fence

Yes, the sales tax on 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..  However, remember, the limit for deducting sales tax, and other taxes is limited to $10,000. 

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