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murtrie227
New Member

Can I assign my city's standard tax rate to the receipts that did not specifically show a sales tax amount???

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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Accepted Solutions
MichaelL1
Level 15

Can I assign my city's standard tax rate to the receipts that did not specifically show a sales tax amount???

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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1 Reply
MichaelL1
Level 15

Can I assign my city's standard tax rate to the receipts that did not specifically show a sales tax amount???

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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