New Car Sales Tax

[photoman]

I have a person that bought a 2011 vehicle on 07/12/2010 and paid a large amount in sales tax. It is my finding that the tax benefit was not extended for this date and we cannot take an additonal tax break for this. Anyone else have any comments.

[solomon]

I have a person that bought a 2011 vehicle on 07/12/2010 and paid a large amount in sales tax. It is my finding that the tax benefit was not extended for this date and we cannot take an additonal tax break for this. Anyone else have any comments.

It depends what you mean. If you are referring to an increase in the standard deduction, then you find correctly. This does not preclude deducting it as part of sales tax on Sch A if you are not deducting state income tax.

[photoman]

Thanks for the advice

Much appreciated Ron

[Burke]

I have a person that bought a 2011 vehicle on 07/12/2010 and paid a large amount in sales tax. It is my finding that the tax benefit was not extended for this date and we cannot take an additonal tax break for this. Anyone else have any comments.

In your case, no on Sche L. However, for someone who bought in Dec 2009 and paid the tax in Jan 2011, yes.

[photoman]

Confused about the Sch L

I am not understanding the No but Sch L.

[zeros]

Amend 2009 for Parents Return?

Should have put on new post. Sorry

[Burke]

I am not understanding the No but Sch L.

In your case, TP bought the car in July 2010. So you cannot add the sales tax on Sche L for persons who do not itemize. That provision was not extended. (However, for someone who bought a car in 2009, but paid the tax in 2010, they are still eligible to do that. See line 7, Sche L.) If your client itemizes, he can add the sales tax to the optional tables and take that deduction if it is more than his state income tax deduction.

[photoman]

Thank You

Now I totally understand. Thanks for the extra effort to help me. Ron