I remodeled my house in 2017. I have receipts from my contractors for approx. $150,000. Many receipts show Sales Tax amount, but about 1/2 do not. The receipts have labor and materials mixed together. Can I assign my city's tax rate to the receipts that did not show specific taxes being charged?
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The actual receipts for the remodeling costs would have to show that the Sales Tax that was indeed paid for it to be deductible.
Many contractors do not pay sales taxes on all their costs due to reselling the supplies when they install them.
So IRS requires the additional receipts you are using to show the actual sales tax paid on them.
The actual receipts for the remodeling costs would have to show that the Sales Tax that was indeed paid for it to be deductible.
Many contractors do not pay sales taxes on all their costs due to reselling the supplies when they install them.
So IRS requires the additional receipts you are using to show the actual sales tax paid on them.
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