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dmpluss
New Member

I am having my state sales taxes estimated and have a major purchase but the major purchase sales tax isn't adding to est. sales tax. Is this a mistake?

 
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2 Replies
AmyC
Expert Alumni

I am having my state sales taxes estimated and have a major purchase but the major purchase sales tax isn't adding to est. sales tax. Is this a mistake?

Probably not, there are reasons it would not be added. First, does it qualify as a major purchase in the eyes of the IRS? See line 7 for the rules which include motor vehicle, plane, boat, or home. Things like jewelry and furniture don't count.

Second, you may have already reached your SALT cap so no additional tax is allowed.

Lastly, your standard deduction may be higher than your itemized deduction so that the IRS allowed major purchase does not help.

 

Reference: Sch A SALT

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I am having my state sales taxes estimated and have a major purchase but the major purchase sales tax isn't adding to est. sales tax. Is this a mistake?

This is indeed an error! I posted this recently. I am not being allowed a major deduction because of some glitch in the code. I get an error that the deduction is not allowed because the rate is not the same as my local area (where I lived all year), but I have confirmed (and reconfirmed) that the rate IS correct and that I AM allowed the deduction.

 

Please fix this!

 

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