TaxTips

Continuously looking for ideas to save your tax dollars


Keeping our Client's abreast of new tax laws and providing them with possible ideas on ways to reduce their tax burden is one of our goals.   We offer this through this continual update of new tax laws and providing some TAX TIPS which may offer savings ideas.  We present these ideas; however, please consider all facts in your case, and talk with your tax representative,  before implementing any of these these ideas.

       Itemized Deductions-New Sales Tax Deduction

For tax years beginning in 2004 and 2005, individuals may elect to claim an itemized deduction for state and local general sales and use taxes, instead of deduction state and local income taxes.  This is especially beneficial to taxpayers in states that do not have an income tax.

Taxpayers making the election to deduct their sales tax may claim either (1) the actual sales and use taxes paid during the year, or (2) an amount taken from an IRS table.  Taxpayers may add to the table amounts any actual amount of sales taxes paid on the purchase of motor vehicles, boats, and other items specified by the IRS.

 

 Copyright   1987 - 2010 A. Harold Davis, CPA