Thanks for the extra info.

Rob

"Okiemoose" > wrote in message
news:Kwqxd.15237$F25.1654@okepread07...
> Actually, that option is available to ALL taxpayers in ALL states who
> itemize deductions. A taxpayer can choose to deduct either state and
> local income taxes paid OR sales taxes paid. Obviously, for those who
> live in states which do not assess income taxes, this is a no-brainer --
> it's a new extra deduction.
>
> The law states that a taxpayer may deduct actual sales taxes paid during
> the year as evidenced by records and receipts, or the taxpayer may choose
> to use an estimated amount taken from an IRS table based upon family size
> and income.
>
> This law change came into being as of October 23, 2004, when the American
> Jobs Creation Act was enacted. Since this enactment was late in the year,
> many taxpayers won't have sales tax receipts from before October 23, 2004
> (or before becoming aware of the law change), and will consequently use
> the table to determine the maximum deduction allowable.
>
> For states that assess a sales tax on a car or boat purchase, this sales
> tax amount is something that would figure into the total when adding up
> sales tax amounts from retained receipts. But extra good news is the fact
> that sales taxes on the purchase of a car and/or a boat can be ADDED to
> the amount from the IRS table to maximize the deduction.
>
> Even if you pay state income tax, it would worth your while to determine
> your sales tax deduction -- the amount may be larger than the amount of
> state income taxes you pay and therefore lower your tax bill. If your
> state has no income tax, congratulations on your new, EXTRA deduction!
>
> If you bought a Corvette (or other car(s) or boat(s)) during 2004 and paid
> sales taxes on the purchase, this new law provision could save you some
> bucks on your taxes.
>
> Happy, less-taxing motoring in your 'Vette!
>
> David
> 2000 Coupe, Millennium Yellow
>
> "Scubabix" > wrote in message
> ...
>>I just received some good news from my accountant. There is a new
>>allowance in the Tax code for people living in states that do not have a
>>state income tax. It allows a deduction for sales taxes paid.
>>Particularly large item purchases. Say, like a car, like a Corvette?
>>Check with your tax preparer for details.
>>
>> Rob
>> 78 & 96 Coupes (Red of course)
>>
>
>