Is sales tax tax deductible? | FerrariChat

Is sales tax tax deductible?

Discussion in '360/430' started by HWJunkie, Oct 5, 2007.

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  1. HWJunkie

    HWJunkie Formula Junior

    Mar 30, 2007
    535
    Oak Park, CA
    Full Name:
    Marc Simon
    #1 HWJunkie, Oct 5, 2007
    In California, on a vehicle purchase, is the sales tax tax deductible? I know that in California there's no credit towards trade in value on sales tax but I was just wondering that if I sell or trade in my Gallardo in 6 months or so and get a 430 or ? can I wrote off the sales tax for 2008, and I guess that would answer also apply to 2007 and my Gallardo purchase...
     
  2. pawlie

    pawlie Formula Junior

    May 10, 2006
    369
    Philly, USA
    Full Name:
    Paul F.
    #2 pawlie, Oct 5, 2007
    I don't know about a CA return, but you can deduct sales tax on your federal return if you itemize
     
  3. Spiderguy

    Spiderguy Formula Junior

    May 21, 2006
    462
    Full Name:
    Harry J
    #3 Spiderguy, Oct 5, 2007
    Technically, you can deduct sales tax, but if you live in California, you probably won't get too much benefit if you're the average taxpayer. That's because you can only deduct sales tax OR state & local taxes, whichever is greater. Since California state income tax is very high, most people benefit more by deducting state & local taxes. However, you should do the calculation to see which amount is higher.
     
  4. SrfCity

    SrfCity F1 World Champ

    Nov 1, 2003
    10,142
    Orange County, CA
    #4 SrfCity, Oct 5, 2007
    Sounds like you're SOL. Indecision can get rather expensive.
     
  5. jir591

    jir591 Karting

    Aug 17, 2005
    237
    Weston, Florida
    #5 jir591, Oct 5, 2007
    sales tax is / was deductable on your federal taxes.
     

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