Scrib

Sales tax deduction rather than the traditional income tax deduction.

Can be HUGE depending on what you bought; i.e. a car, etc. If you've saved receipts, etc...

http://www.irs.gov/pub/irs-pdf/p600.pdf


I'm going to look into this as we did buy a car, and I save every damn receipt for well over a year. Car, LCD TV, snow blower, , lawn mower, lanscaping materials up the waz0000... The list goes on.

And if I'm reading this correctly, it's ALL deductible. I'll have to do some more digging.

CGTSX2004

iTrader: (1)

Hmm...most interesting...

Scrib

After thinking about it more, my wife and I would have had to spend a shitpot of money to get to our paid income taxes...

I'll have to research this more...

dabuda

interesting but

looks like this benefits people that:
1) made a s#itload of purchases, like scrib
2) no state income taxes

Scrib

Right... It's "pick one"...

Even if you spend a lot, you REALLY got to spend. Hell... Even after purchasing a car, I don't think my wife and I would benefit with this approach.

TSX 'R' US

I was wondering about this...
Won't work on stuff I bought online that doesn't charge a sales tax right?

Scrib

Nope

Scrib

Think of it this way...

Say you and maybe your spouse (if applicable) paid $2500 in combined income tax. And say your state sales tax rate is 5%.

You would have to have spent $50,000 in QUALIFYING spend in 2004 to match your paid income tax. That's certainly a nice car, and then some...

dallison

it looks like if the tax rate is different from the state tax rate, thats when you would be able to get teh refund

CrockPot

so, it benefits the rich?

Dan Martin

:ibscribgetsaudited:

Lung Fu Mo Shi

Sucks for me (9% SI Tax in Oregon), but my parents live in Florida...no state income tax.

Thanks.

dabuda

yup, hopefully i can benefit from this...already contacted my cpa, we'll see

Scrib

You gotta wonder how many people will try to take "advantage" of this.

jdone

Tax deductions never benefit the poor. Poor people don't pay any taxes.

dabuda

my cpa said it's applicable for me, but he wants to just use the tax tables instead of actual expenses

guess he doesnt want to deal with receipts

LegendC

Here in WA it works out to be a couple hundered extra dollars. If you use TurboTax they have a calculated "average" on what you spent on sales tax during the year based on how much money you made and how much you probably spent. This way was reciptless. You can also choose to just do the big ticket items.