Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
dakota-408
New Member

Hey guys, I purchased a new ATV in 2016 and paid KY sales tax at time of purchase and would like to know if the sales tax is deductible and if so where to enter? Thanks

 
1 Reply
MichaelL1
Level 15

Hey guys, I purchased a new ATV in 2016 and paid KY sales tax at time of purchase and would like to know if the sales tax is deductible and if so where to enter? Thanks

Sales tax on the ATV can be an itemized deduction.  The big issue here, as a KY resident you have a choice to deduct state income tax (which TurboTax takes from your W-2 and any estimated tax payments made) or choosing the sales tax deduction.  Generally the income tax deduction is higher.  So it may not do you any good on your taxes.  However I would go to that section and try it.

To take a Sales tax deduction you will need to:

To enter Sales taxes paid 

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Deductions and Credits
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Estimates and Other Taxes Paid
  • On Sales Tax, click on the start or update button
  • TurboTax will compute a general sales tax deduction based on your income and then you can add large purchases like your ATV.  It will then compare this deduction to the income tax deduction and suggest you take the larger one.  

Note:  If the ATV is for business it will be deducted on a business schedule. 

Privacy Settings
v