Been doing my own taxes for many years.


I have been audited. Several times..when I was still active duty for the Army. Mostly because I paid zero taxes for many years. Gotta love that income, so low and four kids=no taxes.

 

Four kids? Sheesh.

 

Okay Dave, so it sounded from your original post on the matter that you were able to write-off the Sales Tax and that is what triggered the pucker-factor on my part...
It appears now that the Sales-Tax was not written off but used as some sort of proof of purchase in your state.
Correct?

----Scott----
There are a few good benefits of serving our country. I have no idea why they chose to pick on you...
4 kids! GREAT!!!!! that means more opportunities for grand kids!

 

Randy - There is a formula for sales tax that is a part of the long form. It's a 'standard deduction', whatever that is, and is a 'best guess' for whatever you bought over the fiscal year and is not itemized. Say you put a set of brakes on your daily driver and it was $250 plus sales tax. That sales tax cost would be part of your standard deduction.

Now, if you have big ticket items like a car, boat, RV, airplane or whatever, you can add that sales tax to the standard deduction. For instance, the dollar difference between the trade and the new trailer was (hypothetically) 30,000 dollars. In NY State for me and in my area, it's 3% state and 4% county. That 7% of that $30K is $2100. That figure goes on a separate line and is added to the standard.

Next, the interest on my loan, which was only a part of that hypothetical $30K, say $5K @ 2.99% over 3 years, I'm also able to take 5/36ths for the first year(August-Dec 31), 12/36sths the second, etc, etc. as I have now declared it my second home.

Guess we need to trade every 3 years

I was (am?) confused too

........and 4 kids - our 4 have produced 10 grandchildren, only one of which we see regularly since she is going to college about 15 miles down the road. She shows up about once a month for an R&R weekend (hers) to help clear out the fridge (howinheck can one skinny 19 year old girl eat so much?)

 

A second 'anything' has tax deduction possibilities - period.
As long as it has a bed and a bathroom it's deductible if for personal use...

be it an rv, a ski shack, a condo, whatever...

 

Bed, toilet and cooking facilities according to the IRS code

 

My CU sends me a tax statement yearly that shows the interest paid on the fiver--they recognize it as a 'second home' Here in TX-- we have some tax setup that we can deduct all sales taxes paid, (has something to do with no income tax) either by their standards based on income level, or by keeping all receipts and adding the taxes paid. This worked well until I retired, now not spending enough to get the itemized tax deduction, have to use the IRS table. TurboTax does it all.
Joe

 

Your lawyer may be correct about not being able to deduct. Your maximum deduction is at 500,000 loan single and 1000000 if married. If you have a large mortgage on a home and a really nice camper you might be over the deductibility limit.

 

Very true - but that's for sure not my case. Home is paid for and the camper has a very small note. My next IRS search is to see how much or even IF I can deduct maintenance on my rolling 'second home'.

 

Nope...unless you took out a loan for those repairs and then you MIGHT be able to deduct the interest.