Sales Tax Deduction

Bird Legs

Senior Member

Join Date: Jun 2005

Posts: 990
#1

Sales Tax Deduction

03-12-2006, 01:32 PM

Client, Sole Proprietor, buys a car. Uses it about 40% for business. Using mileage not
actual expense.
Client also itemizes on Sched. A.
What percentage of the sales tax paid on the car would you deduct on Sched. A?
100%; 60%?
Tags: None
JG EA

Senior Member

Join Date: Jul 2005

Posts: 2176
#2

03-12-2006, 02:32 PM

Off the top of my head I would take the business % of the vehicle as the basis and use the personal % as your deduction.Recording the total price in your records for when there is a sale (including the ST) might mean a difference in the furture (the % could change), but in the first year the ST only on the personal % seems right to me.

JG
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