I know that if I purchased a new car in 2006 I could have deducted the sales tax paid on my income tax. What about if I purchased a car in 2007 or in 2008?
I am looking to purchase, but unsure if I should hurry and buy before the end of the year or can still deduct if I wait and purchase in 2008.
2007-12-07 03:15:53 · 4 answers · asked by AFW 1 in Business & Finance ➔ Taxes ➔ United States
Maybe. For the last few years you could if you itemized, and if you chose to deduct sales tax rather that state and local income tax. That expired last year, but Congress might extend it again - they did last year. Congress so far hasn't finalized changes to tax laws for 2007 if they plan to make any. If they extend it for 2007, it's anybody's guess whether they would again for 2008.
2007-12-07 03:29:27 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
As of right now congress has not extended the Sales tax deduction for 2008.
2007-12-07 03:24:28 · answer #2 · answered by tscgmc 2 · 0⤊ 0⤋
No. you're no longer allowed to declare the revenues tax paid in 2007 on your 2008 return. even if, in case you want, you ought to use form 1040X to amend your 2007 tax return to deduct the revenues tax fairly of the traditional deduction.
2016-10-10 11:30:40 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you live in a state that doesn't have a state income tax, it's probably worth it. I don't. I would have to buy a $60,000 vehicle to have sales tax exceed the state income tax I pay.
2007-12-07 03:31:16 · answer #4 · answered by curtisports2 7 · 0⤊ 0⤋