Saturday, October 31, 2009

If my car and sales tax are financed can I deduct the sales tax on it?

Yes.



If you claim sales tax, however, you will not be able to deduct state income tax paid. Be careful to deduct which ever is highest.



If my car and sales tax are financed can I deduct the sales tax on it?

Whether it%26#039;s financed or not, you can deduct the sales tax IF YOU ITEMIZE. You have a choice of deducting state and local income taxes OR sales tax, not both, though, and if you are working, your income tax would probably be higher than your sales tax.

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