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see B and C. As to the contractor's 2% excise tax, it may not qualify as a sales tax
taxes on schedule A are limited to $10K. That includes real estate and most other taxes except
that you must choose between sales tax and state income tax if you have one
3. A home (including a mobile home or prefabricated home)
or substantial addition to or major renovation of a home, but only
if the tax rate was the same as the general sales tax rate and any
of the following applies.
a. Your state or locality imposes a general sales tax directly
on the sale of a home or on the cost of a substantial addition or
major renovation.
b. You purchased the materials to build a home or
substantial addition or to perform a major renovation and paid
the sales tax directly.
c. Under your state law, your contractor is considered your
agent in the construction of the home or substantial addition or
the performance of a major renovation. The contract must state
that the contractor is authorized to act in your name and must
follow your directions on construction decisions. In this case, you
will be considered to have purchased any items subject to a
sales tax and to have paid the sales tax directly
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