Sales Tax Deduction

[Snaggletoof]

By the way, in case anyone is interested, "Snaggletoof" is what comes out when you try to describe severe cases of snaggled teeth overbites. (Seriously, just another name I have to use when logging in on a different computer)

Last I heard, they haven't reactivated the Sales Tax Deduction on Schedule A for 2006. This is really significant in states like Tennessee where there is no general income tax. It gets downright personal when I have done several things to make 2006 a deductible year. I bought another car on January 2nd, contributed $500 to the church on January 1st, will contribute another $500 on December 31, paid my 2005 property taxes THIS YEAR and will also pay my 2006 property taxes THIS YEAR. The ultimate "bunching." If I can't deduct my sales taxes, part of my strategy has really backfired.

I think there is the tuition adjustment strung out by this same inaction, and both of these tax breaks were scheduled to expire at the end of 2005.

Does anyone out there have an update on this?

[djack1040]

Expired Tax Deductions & Credits

There are actually three significant items that have not been approved for 2006: 1) educator expenses; 2) tuition & fees deduction; and 3) the sales tax deduction.

Another is the very limited in scope District of Columbia 1st Time Homebuyers Credit.

I attended a political rally last week and one of our Senators and our Congressman was present (both Republicans). Each felt that when congress reconvenes after the election, no matter who wins, all three prior provisions will be pushed through by year-end.

Have you noticed the IRS is delaying certain publications probably in anticipation of some post election antics.

[Black Bart]

Sorry Snag -- no info available.

items that have not been approved for 2006:

...the...District of Columbia 1st Time Homebuyers Credit.

Gosh, I hope they don't cancel this one -- obviously a favorable bit of legislation enacted with the good of the American public in mind (good credit too -- 5,000 bucks or so I think). A wonderful idea -- pay the guy for buying a house up there. Although, it kind of makes you wonder -- what's wrong with houses in the rest of the country?

Another one: Form 8900 -- "Qualified Railroad Track Maintenance Credit." If you can buy or lease a few miles of track, Uncle Sam will pay you the tidy sum of $3,500 each for half of those miles if you'll clean it up. Sounds pretty good -- I wonder if just dusting off the rails with a broom would qualify?

I've written my congressman about my idea for the "Arkansas 1st Time PlasmaTVbuyers Credit," but he hasn't gotten back to me. Do you think he's not taking it seriously? Should I have instead proposed a $3,500 credit for cleaning up my office? It seems to me he could support my credit just as easily as the DC guy's. I mean; after all -- what's the difference?

[veritas]

Let's not forget the Wisconsin two wheeler credit for those purchasing 2005 models. I would recomend a 10 percent credit retroactive for certain purchasers on March 13, 2005 in Tigard, Oregon and placed in service within two weeks of purchase date and have a blue hued paint finish.



I know this is possible because they did it with railroad cars in 1987.

[jainen]

Which form do we use

>>certain purchasers... blue hued<<

Which form do we use to claim the credit for downloading MP3 files?