I bought a new car. It was totalled in an accident. I bought another new car. Can I deduct sales tax on both purchases?

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I bought a new car. It was totalled in an accident. I bought another new car. Can I deduct sales tax on both purchases?

Yes, if you bought both in 2018.

Common major purchases include:

Vehicles
Off-road vehicle

You can also include:

Aircraft
Boats
Mobile homes
Manufactured housing
Building materials for major home improvements

These items are not considered to be major purchases:

Furniture
Jewelry
Computers
Televisions or other electronic equipment
Items purchased for your business or rental property

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I bought a new car. It was totalled in an accident. I bought another new car. Can I deduct sales tax on both purchases?

Yes, if you bought both in 2018.

Common major purchases include:

Vehicles
Off-road vehicle

You can also include:

Aircraft
Boats
Mobile homes
Manufactured housing
Building materials for major home improvements

These items are not considered to be major purchases:

Furniture
Jewelry
Computers
Televisions or other electronic equipment
Items purchased for your business or rental property

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