(I know this thread is a little off topic...)

Does this new rule work for leases as well? In MD, they calculate sales tax
on the negotiated price of vehicle, rather than a monthly sales tax on t he
lease pmt.

-Stan


"Scubabix" > wrote in message
news
> 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)
>>>
>>
>>
>
>