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Hello Community,
Today, I had my first client tell me that, yes, they had purchased a boat last year. My state has a Sales Tax Credit Trade-In Program, is that why that question is on the Client Questionnaire?
Happy Weekend,
Dawn
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I have no idea what a "Sales Tax Credit Trade-In Program" is, but sales tax for large items (such as the boat) can be added to the sale tax deduction if you are itemizing deductions on Schedule A.
However, if you live in a state with income tax, it is quite possible that the itemized state income tax deduction would be larger than the sales tax deduction, in which case the sales tax deduction would not reduce taxes.
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Ah, that does make sense. I'm sure I was complicating it! Been a long week! 😉
Have a great weekend,
Dawn
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I'm intrigued: "In 41 states you can get a tax credit in when you trade-in your car if you buy another at the same time."
You only pay sales tax on the Net purchase.
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