Sales Tax deduction on new house

[Rae]

Client had a new home built. His brother has TurboTax and said that there was a formula for taking the total cost of the house and figuring the amount of sales tax you can deduct on Sch A. I'm not having much luck in my research! Can anyone help? I just really question as whether this IS deductible as the builder pays the tax (well, kinda).
Thanks,
Rae

[Jiggers]

Sales tax on new home

No such animal.

Must have receipts.

See IRS instructions for sales tax deduction.

[linda]

Sales Tax On House

I would say it is not deductible as it would be in the total cost of the house and the builder would have paid it. Have not seen such a calculator on my computer program. If the person had purchased the materials himself to build, it would probably be a different story.

[JG EA]

I had someone tell me the same thing. But looking into it further it was talking about the tables. I explained that this is automatically built into my program.

[Bird Legs]

Sales Tax on Home

The only way the client can deduct this is if client purchased all materials him/herself
and paid the sales tax on it.
This would make it deductible and it would be added to the sales tax calculated from the chart.

[taxea]

sales tax deduction on new house

If the builder charged sales tax to the client the client can take the sales tax paid. Surely the builder gave the client a detailed invoice for the building of the house

[rosieea]

If the builder charged sales tax to the client the client can take the sales tax paid. Surely the builder gave the client a detailed invoice for the building of the house

Here in FL that would not happen. Home builders and other such construction contractors pay sales tax on their purchases and that tax is included in their COGS. The invoice to the client does not charge sales tax. I suspect many other states follow this practice (which, by the way is codified in FL law).