Tax Tips: Purchased an auto, boat, aircraft or home in 2007? (Sales Tax)

If you did, do NOT forget to deduct the sales tax for these items in addition to the generic calculated tax on Schedule A. You have a choice which deduction to take, your sales tax deduction, or your state tax deduction. For states that do not have state taxes, e.g. Texas and Florida – you don’t have a choice – the sales tax deduction is the deduction available to you. However, you can only deduct the sales tax amount that is calculated with the same sales tax rate as the general sales tax rate. Here’s more detailed information.

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