Motor Vehicle Sales Tax on SC Return

[DonnaA]

I am trying out the TRX 2009 Tax Works program. The new motor vehicle sales tax is shown as an addition to Federal Taxable Income on Line 36 of the SC return. The ATX program does not show this add-back. Which program is correct?

[Booger]

I am trying out the TRX 2009 Tax Works program. The new motor vehicle sales tax is shown as an addition to Federal Taxable Income on Line 36 of the SC return. The ATX program does not show this add-back. Which program is correct?

Check out the SC instructions.......should tell you how that state handles the sales tax on new vehicles.

Booger

[DonnaA]

Check out the SC instructions.......should tell you how that state handles the sales tax on new vehicles.

Booger

That's the first thing I did. If it is mentioned in the instructions, I missed it.

[jainen]

>>If it is mentioned in the instructions, I missed it<<

The instructions are pretty specific as to line numbers, so in my opinion you should be safe following them exactly (i.e., taking the deduction). But that does seem strange because South Carolina specifically exempts sales taxes from the deduction allowed under I.R.C. Section 164.

Why don't you ask TRX sales what authority they are using for the calculation? Beyond the specific deduction, their response will probably give you a lot of information to assist your decision about what software to buy.