I purchased a 2021 new motorhome in 2021 and want to see if I can get any of the State and local taxes back.

[IggyAZ]

In 2021 I purchased a new motorhome in Arizona. I usually take Standard deductions in past years and using now Turbo Tax Deluxe.
The state tax was over $8,000 and local city tax was over $3,000
Must I itemize deductions to try and get some of these taxes back?
Normally I use standard deductions in past years and have not had any changes in my gross income.
I usually using standard deduction never owe any additional tax to FEDs or to State.
I do not live in it and use it just a few months a year.

So the question is can I gain anything from itemizing or can I still get some of this back using standard deductions.

RV Traveller

[Carl]

Any sales tax you paid as a consumer on anything purchased, has nothing to do with your income tax return. But it may be a business deduction if the item was purchased for the business.

[xmasbaby0 · Accepted solution]

You need to itemize deductions if you want to use sales tax.   If you do not have enough itemized deductions to exceed your standard deduction, the sales tax will have no effect.   And....there is a cap of $10,000 on state and local tax you can use as an itemized deduction.

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2021 by going to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax.  You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your new vehicle. 

Sales tax is an itemized deduction.   

“Major purchases” that you can enter for the sales tax deduction include:

Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles

Aircraft or boats

Mobile homes

Manufactured housing

Building materials for major home improvements

You cannot deduct: furniture, jewelry, home electronics such as TV’s or computers

https://ttlc.intuit.com/questions/1901222-which-deduction-should-i-choose-sales-tax-or-income-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

https://ttlc.intuit.com/questions/3148443-how-do-you-define-major-purchase-or-major-item-for-the-sal...

https://ttlc.intuit.com/questions/1900791-how-do-i-find-my-local-sales-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

STANDARD DEDUCTION

Many taxpayers are surprised because their itemized deductions are not having the same effect as they did on past tax returns.  The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact since the new tax laws went into effect beginning with 2018 returns.

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts)   The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

Your standard deduction lowers your taxable income.  It is not a refund.  You will see your standard or itemized deduction amount on line 12a of your 2021 Form 1040.

2021 STANDARD DEDUCTION AMOUNTS

SINGLE $12,550  (65 or older + $1700)

MARRIED FILING SEPARATELY $12,550  (65 or older + $1350)

MARRIED FILING JOINTLY $25,100  (65 or older + $1350 per spouse)

HEAD OF HOUSEHOLD  $18,800  (65 or older +$1700)

Legally Blind + $1350

[Bsch4477]

One of the nice features of TurboTax is that you can input your itemized deductions and it will choose the more advantageous between standard and itemized deduction. Your motor home is considered a second home so you can deduct any mortgage interest you may have. TurboTax will also consider your state tax liability and choose the more advantageous deduction. 

[VolvoGirl]

Yes you would have to itemize using Schedule A instead of taking the Standard Deduction.   You would have to take the sales tax deduction instead of state income tax deduction.  And all your deductions have to be more than the Standard Deduction to be used.  So then only the amount that puts you over the Standard Deduction makes a difference.

So go ahead and try entering all your deductions.  It may help.  

[IggyAZ]

Follow-up Question.

It seems 2021 I can do better just taking standard deductions.
Can I defer my motorhome purchase to 2022 tax year for State and local taxes as my taxable income will increase dramatically?
Thanks

[xmasbaby0 · Accepted solution]

If you did not purchase the motorhome yet---but if you purchased it in 2021 you cannot use the sales tax on a 2022 tax return.