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Level 1
posted Mar 7, 2023 9:08:18 AM

What qualify as building materials under the itemized sales tax deduction?

We knocked down our old dock and built a new, larger one this year. I know we can deduct the boards, nails, roofing materials for sales tax purposes. We paid for all materials ourselves. What little things qualify? For example, a tv wall mount, permanently installed dock bumpers, lighting, tie down ropes and chains attached to the dock? If it's what we would consider a permanent install, does it qualify?

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2 Replies
Expert Alumni
Mar 7, 2023 10:04:20 AM

Yes, ropes and chains and the other items permanently affixed (or not meant to be removed and used elsewhere) would be considered building materials and could be used for the Itemized Sales Tax deduction.

 

Basically, if it is necessary to make the structure function for its intended use, or is meant to be permanently affixed it would be considered building materials. 

 

Do remember when taking the itemized deductions for your state and local taxes that your total state and local sales, property and income taxes are limited to $10,000 total ($5,000 if married filing separate) Any state or local taxes over the $10,000 will not result in a larger deduction and cannot be carried forward to help in future years. 

Level 1
Mar 9, 2023 11:15:22 AM

Thank you. That is exactly what I needed to know!