Schedule L

[the boss]

Did legislation pass to allow taxpayers that can't itemize but paid R/E tax to use Schedule L in order to achieve a higher standard deduction as last year?

[kcjenkins]

No, the Sch L is still in existence, but it now covers only certain disaster losses and new motor vehicle taxes,

[Tax Prep by Deb]

And the new motor vehicle taxes has to be for a vehicle purchased prior to January 1, 2010. So how in the world does that work, unless it's referring perhaps to a lease where the sales tax is paid through each payment?

Deb!

[TAXBILLY]

You bought a new vehicle that qualified maybe December 31st, 2009 but didn't pay the sales tax until January 2, 2010.

taxbilly

[grandmabee]

also some people go to a different state with no sales tax and buy a car then when come home and license it in home state 60 days later they have to pay the sales tax.

[kcjenkins]

In many states, mine included, you have 30 days or more to pay the sales tax on a new car, so it's not that unusual for someone to buy a car in Dec and pay the sales tax in Jan.

[Tax Prep by Deb]

I hadn't thought about that. Here in CA if you buy a vehicle from a private party you have 10 days, however if you purchase from a dealer, it is included in the contract and paid at the time you take delivery.

Thanks for the lesson!

Deb!