You can choose Enter All My Receipts (add up all your sales tax from receipts) or use the Easy Guide. Major purchases are asked about separately at the end if you use Easy Guide. The tax rate has to be equal to your state and local general sales tax rate to be deductible.
If all of these conditions apply, you can deduct sales tax on a home renovation:
- You're itemizing
- You're taking the sales tax deduction, as opposed to the state/local income tax deduction
- The tax rate is equal to your state and local general sales tax rate
- You (or your contractor acting as your agent) purchased the building materials and paid the tax
When we ask if you bought any major items while living in your state, answer Yes if you purchased:
- A motorized vehicle (car, truck, RV, motorcycle, etc.—sorry, no mopeds).
- An aircraft, boat, mobile home, or manufactured home, but only if you paid the general sales tax rate (otherwise it doesn't apply).
- Building materials for a major renovation or substantial addition to a home, if you paid the general sales tax rate yourself or your contractor was authorized to purchase these materials per your instructions or building contract.
Otherwise, answer No, even if the items you purchased were expensive or really big.
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