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.
