If I claimed expenses or depreciates improvements on my rental, can I still deduct the sale tax paid on those expenses or improvements?
or is the allowed that I separate the tax paid and the cost excluding tax. I then can claim the cost excluding tax of those expenses and depreciates improvements on my schedule E. Deduct the sale taxes paid on my deduction?
and yes I am
1.itemizing.
2.taking the sales tax deduction, as opposed to the state/local income tax deduction.
3.The tax rate is equal to your state and local general sales tax rate. (I live in WA so no state income tax)
4. I paid my contractor then my contractor acting as my agent purchased the building materials and paid the tax.