An Official Tax Question

[Bird Legs]

re sales tax paid on vehicle partly used as business car.
Client buys car in 2005. used 42% for business. The total sales tax paid was
1700.X48%= $816. personal. Can this personal portion be deducted on Sched. A ?

[Chief]

Tax on Bus Vehicle

I see no reason you can not deduct personal sales tax on the vehicle. You're in a state w/o income tax. You have to wait until Feb 6 or there about to file your clients return.

[sea-tax]

re sales tax paid on vehicle partly used as business car.
Client buys car in 2005. used 42% for business. The total sales tax paid was
1700.X48%= $816. personal. Can this personal portion be deducted on Sched. A ?

Bird I do not see any reason why you can not take the sch a deduction. BTW I think you mean 58% not 48%.

100% less 42%biz use = 58%personal

1700 X .58= $986.00

Hope this helps.

[Bird Legs]

sea-tax you

are correct. Another mental lapse.
By the way, this is a 2005 tax return. So it can be filed just as soon as it is finished.
Still have about 4 2005 returns to do.
This year has been a most difficult year for me. A lot of obstacles, including my
mental attitude.
Want all of you to know that your responses are greatly appreciated.

[jainen]

the full $1700

Why not deduct the full $1700 if you use standard mileage method? If you use actual expenses for car, reduce the depreciable basis by the amount deducted on Schedule A.