As this is tax time  , my mind always searches for deductions on my income tax. So here is the thought; Because we took ownership of the vehicle in Munich, and there is import duty of 2.5% paid to customs when the car enters the port. Can I deduct the duty from my individual taxes???  |
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I was trying to figure out if I can deduct the sales tax, but deducting the duty would be cool too...
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| Reply » Great Minds---Duty on ED |
Quote: | I was trying to figure out if I can deduct the sales tax, but deducting the duty would be cool too... | Can you please elaborate on this...how you would deduct your sales tax
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Quote: | Can you please elaborate on this...how you would deduct your sales tax | Well, I know you can take a deduction for a certain amount of sales tax, either you can add up all the sales tax you paid or take a standard deduction. I really don't remember the exact details but I do remember doing it on my federal return last year. I'm sure somewhere on the web has more and probably better info.
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| Reply » Great Minds---Duty on ED |
Quote: | Well, I know you can take a deduction for a certain amount of sales tax, either you can add up all the sales tax you paid or take a standard deduction. I really don't remember the exact details but I do remember doing it on my federal return last year. I'm sure somewhere on the web has more and probably better info. | Yes, there's a new provision that allows you to deduct sales tax. You either get some sort of proxy based on income (i don't know the formula, but they assume you spend say 70% of your income, and you then multiply that by your state tax rate) or you can submit receipts for actual purchases. It's as an alternative to deducting income tax, so you can't deduct both.
Pretty sure you can't deduct import duty, which is a federal tax and not separately paid for anyway by you (it's built into the price).
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| Reply » Great Minds---Duty on ED |
Quote: Yes, there's a new provision that allows you to deduct sales tax. You either get some sort of proxy based on income (i don't know the formula, but they assume you spend say 70% of your income, and you then multiply that by your state tax rate) or you can submit receipts for actual purchases. It's as an alternative to deducting income tax, so you can't deduct both.
Pretty sure you can't deduct import duty, which is a federal tax and not separately paid for anyway by you (it's built into the price). | Thanks for the clarification!
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Great Minds---Duty on ED