Additional State Sales Tax

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  • Bird Legs
    Senior Member
    • Jun 2005
    • 990

    #1

    Additional State Sales Tax

    Client remodels her house, new siding etc. total cost approx. $9,000.
    The contractor tells her that the materials cost $7,000. and labor $2000.
    State Sales Tax on the 7,000. would be approx. $560.
    Can she use the sales tax paid on the material in addition to the sales tax from the
    chart as an itemized deduction?
    No state income tax to worry about.
    Thanks for your assistance.
  • Brian EA
    Senior Member
    • Dec 2005
    • 786

    #2
    Originally posted by Bird Legs
    Client remodels her house, new siding etc. total cost approx. $9,000.
    The contractor tells her that the materials cost $7,000. and labor $2000.
    State Sales Tax on the 7,000. would be approx. $560.
    Can she use the sales tax paid on the material in addition to the sales tax from the
    chart as an itemized deduction?
    No state income tax to worry about.
    Thanks for your assistance.
    Here is the list of examples
    car, suv, van, motorcycle, motor home, truck, aircraft, boat , HOME.It does not specifically say materials used for home improvement.
    Everybody should pay his income tax with a smile. I tried it, but they wanted cash

    Comment

    • jainen
      Banned
      • Jul 2005
      • 2215

      #3
      No

      >>Can she use the sales tax paid on the material<<

      No. She didn't pay the sales tax. The contractor did.

      Comment

      • Chief
        Senior Member
        • Jun 2005
        • 799

        #4
        State Sales Tax

        If your client prefers to keep receipts and records, all sales tax paid by client may be deducted. Who in the world would want to keep such receipts and tally them up at the end of the year?

        Comment

        • ecb34691
          Senior Member
          • Jun 2005
          • 247

          #5
          I had one do it and it was about 3 times the IRS tables. She brought in a "large" plastic bag with them all in and a summary list by month.

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