We are building a home. Can sales tax for building materials, etc be deducted? If so, does each individual receipt need to be entered or can one summary entry suffice?

[Coleen3]

You can do a summary.

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

You can enter the sales tax you paid in 2017 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 items.

• Sales tax is an itemized deduction.  If your state has a state income tax, you have to choose between using the deduction for your state tax paid OR the sales tax deduction, whichever is higher.  The TT process will suggest one or the other as you prepare your return