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We built a new home and want to know if we can use the sales tax from the material and appliances as a deduction

Does the tax from material and appliances count as deductions
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1 Reply
Vanessa A
Expert Alumni

We built a new home and want to know if we can use the sales tax from the material and appliances as a deduction

If you are itemizing your return and choose to take the sales tax deduction instead of the income tax deduction, then yes, you can use the sale tax from the material and appliances as a deduction. 

 

To enter the taxes you paid select the following:

  1. Deductions and Credits
  2. Start next to Sales Tax under Estimates and Other Taxes Paid

Itemized expenses include mortgage interest, charitable contributions, state and local taxes (OR SALES TAX) up to $10,000, medical expenses in excess of 7.5% of your AGI and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss.  Your health insurance and all medical expenses are only deductible for the amount that is over 7.5% of your AGI.  This means if your AGI is $50,000, then the amount that is over $3,750 is deductible

 

Then your total itemized expenses would need to be greater than your standard deduction below in order to benefit from your sales tax you paid. 

 

The 2023 Standard Deductions are as follows:

  • Married Filing Joint (MFJ)              $27,700
  • Married Filing Separate (MFS)      $13,850
  • Head of Household (HOH)             $20,800 
  • Single                                                     $13,850                                

Blind or over 65 and MFJ or MFS add $1,500

Single or HOH if blind or over 65 add $1,850

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