Quick question - would like to confirm with the experts out here.
If a client paid a relatively small amount of state income taxes in the prior year but purchased a relatively expensive automobile in '06 so that the sales tax (on auto + standard table amount) is much larger than the '06 income taxes paid AND they take the standard mileage rate on the business use of the vehicle are there any issues with:
1) Taking the sales tax deduction in full (standard table amount + sales tax paid on car) on Schedule A, and
2) Taking the automobile expense based on business mileage of the vehicle on Schedule C.
Thanks in advance for your confirmation on this matter.
If a client paid a relatively small amount of state income taxes in the prior year but purchased a relatively expensive automobile in '06 so that the sales tax (on auto + standard table amount) is much larger than the '06 income taxes paid AND they take the standard mileage rate on the business use of the vehicle are there any issues with:
1) Taking the sales tax deduction in full (standard table amount + sales tax paid on car) on Schedule A, and
2) Taking the automobile expense based on business mileage of the vehicle on Schedule C.
Thanks in advance for your confirmation on this matter.
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