Optional Sales Tax

[Janitor Bob]

In past years, you could deduct EITHER your state and local income tax OR your sales tax on Sch A....Is the sales tax still an option?.....I have a client that purchased several vehicles and his sales tax paid is much larger than state income tax paid. I cannot remember if this was extended.

[gfizer]

Yes, for 2007 returns you can choose to deduct either state and local income tax or general sales tax.

[Cat in OH]

In past years, you could deduct EITHER your state and local income tax OR your sales tax on Sch A....Is the sales tax still an option?.....I have a client that purchased several vehicles and his sales tax paid is much larger than state income tax paid. I cannot remember if this was extended.

There's a rabbit on the Sched A line 5 that takes you to a worksheet where you can enter sales tax on large $ items (at the very bottom of the page).

[Janitor Bob]

There's a rabbit on the Sched A line 5 that takes you to a worksheet where you can enter sales tax on large $ items (at the very bottom of the page).

Thanks...I have used this before...but this is the first opportunity to use it this year.

...Also client just informed me that the vehicle purchased happened in 2006....NOT 2007....So looks like I will need to amend last year.

Client....a car sales man who, conveniently, is also a "tax expert" states that he and his buddies were talking and he thinks that he should be able to deduct the 2006 sales taxes paid on this 2007 return instead of amending last year...Where did they get this?!