We did some home improvements this year including adding granite counter tops, replacing a door and installing a tile backsplash. Is there a way to include these high dollar purchases in my sales tax estimate?
Yes, you will include the sales tax on these improvements under the "building material" category under the major purchases under sales tax. This additional major purchase is only allowed for materials used on a personal residence (any rental improvements will be included under the rental section)
A few things to remember about this deduction, you will only get this extra deduction if:
To enter your sales taxes and major purchases in TurboTax Online or Desktop, please follow these steps:
As noted above: you are only allowed the major purchase additional sales tax amount if the sales rate you used for your general state sales tax rate is the same sales tax rate on your major purchase.
So if you used a 8% general sales tax rate for your state, this would have to be the same sales tax rate for your building material purchases. Just make sure that when you enter this information under the "Major Purchase" section, that your sales tax divided by your cost is your general state's sales tax rate.
Yes, you will include the sales tax on these improvements under the "building material" category under the major purchases under sales tax. This additional major purchase is only allowed for materials used on a personal residence (any rental improvements will be included under the rental section)
A few things to remember about this deduction, you will only get this extra deduction if:
To enter your sales taxes and major purchases in TurboTax Online or Desktop, please follow these steps:
As noted above: you are only allowed the major purchase additional sales tax amount if the sales rate you used for your general state sales tax rate is the same sales tax rate on your major purchase.
So if you used a 8% general sales tax rate for your state, this would have to be the same sales tax rate for your building material purchases. Just make sure that when you enter this information under the "Major Purchase" section, that your sales tax divided by your cost is your general state's sales tax rate.
I've gone through the Easy Guide and I'm not seeing an option to enter major purchases.