I replaced all carpeting and tile last year with new tile and also upgraded baseboards. Additionally, I updated the toilet and sink in powder room. Would these qualify as major purchases for purposes of calculating the sales tax? if so, would it be just the materials or the total cost including labor? Thank you for any and help!
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No. See IRS Schedule A page A-6 third column line 7 on what items you can add to the sales tax table. http://www.irs.gov/pub/irs-pdf/i1040sca.pdf
You can only add
1. A Motor Vehicle
2. Aircraft or Boat
3. A Home
Major purchases do NOT include:
-Furniture
-Jewelry
-Home electronics
-Appliances
Those expenses would qualify as major purchases to include in the sales tax figure. The amount entered for Schedule A would be for just the materials.
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