Why can't i deduct the sales tax on a boat purchased in a different county than were i live.

[NancyG · Accepted solution]

You can deduct the sales tax on a boat purchased in a different county. As long as the sales tax rate on your major purchase is the same as the sales tax rate on other items where you bought it, the sales tax should be deductible in full. However, you have to "trick" TurboTax to be able to do so.

With the desktop program you need to use "Forms Mode" to enter the deduction. From the Tax and Interest Deduction worksheet you need to change the tax rate for the total state and local rate (in Section D in column 2) for your major purchase, to the general sales tax rate where you purchased it.

With the on-line program, you also need to trick the program by calling whatever major purchase you made outside your normal living area an automobile (even if it was a boat.)  The reason is because an auto is an exception to the rule. Data on the worksheet is not sent to the IRS, so it shouldn't have any effect on your tax return or their processing of it.