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wnytaxman · 12-17-2015, 08:29 AM

If you purchased a new RV in 2015 you may have just received a bonus. Congress has passed the tax law which provides for the sales tax deduction retroactively to the beginning of 2015 and allows it to be continued and made "permanent." The reason for the quotes is that there is very little in tax law that is permanent. It is expected that the President will sign the law.

This would apply to anyone who itemizes deductions. If you don't itemize then this make give you enough to itemize.

Captjake1 · 12-17-2015, 08:40 AM

I am pretty sure that only applies if you live in a state with no income tax (because in those states you can deduct State income tax).

Glad to see they made it a permanent thing and not subject to renewal every year.

If I have a large project (remodel, car purchase, RV, etc) I save ALL of the receipts and deduct that on top of the standard deduction allowed for sales tax (I live in a sales tax only state).

wnytaxman · 12-17-2015, 08:52 AM

Quote:

Originally Posted by Captjake1

I am pretty sure that only applies if you live in a state with no income tax (because in those states you can deduct State income tax).

Glad to see they made it a permanent thing and not subject to renewal every year.

If I have a large project (remodel, car purchase, RV, etc) I save ALL of the receipts and deduct that on top of the standard deduction allowed for sales tax (I live in a sales tax only state).

Actually, you get the greater of the sales tax or the income tax. The sales tax deduction starts with a table based on your state plus county or local sales tax. To that you would add any vehicle sales tax paid such as on an RV or car or truck. Then you compare that to the state income tax paid and you get whichever deduction is larger.

Here in NY we have a high income tax, but it is not unusual for the sales tax deduction to exceed the income tax. That is particularly true for those who's pensions are not taxable in NY.

Captjake1 · 12-17-2015, 08:55 AM

Quote:

Originally Posted by wnytaxman

Actually, you get the greater of the sales tax or the income tax. The sales tax deduction starts with a table based on your state plus county or local sales tax. To that you would add any vehicle sales tax paid such as on an RV or car or truck. Then you compare that to the state income tax paid and you get whichever deduction is larger.

Here in NY we have a high income tax, but it is not unusual for the sales tax deduction to exceed the income tax. That is particularly true for those who's pensions are not taxable in NY.

And I just now note the word 'tax' in your handle.

This is why I take everything to my tax guy every year!

NevadaNick · 12-17-2015, 09:03 AM

We also get to deduct the basic gov services tax on our vehicles. It used to be called a privelage tax.

Arch Hoagland · 12-17-2015, 09:10 AM

Good post, thanks for the heads up.

ArmandV · 12-17-2015, 09:15 AM

I'll rejoice when the bill is actually signed into law. It still has to pass the Senate.

https://www.congress.gov/bill/114th-...house-bill/622

F4Gary · 12-17-2015, 09:29 AM

What about the sales tax on a used motorhome? We bought ours in Feb.

wnytaxman · 12-17-2015, 09:52 AM

Quote:

Originally Posted by F4Gary

What about the sales tax on a used motorhome? We bought ours in Feb.

Used or new doesn't matter for the sales tax deduction.

The bill has bi-partisan support as both parties got their respective "goodies" in the bill so there should be no real opposition to its passage.

wnytaxman · 12-19-2015, 07:42 AM

It's official. The sales tax deduction has been signed into law and is available in 2015 and 2016. That has to be helpful for many who bought this year.

**CLIFFTALL** · 12-19-2015, 07:48 AM

Thanks for posting this.

.

ChallengerRN · 12-19-2015, 08:00 AM

Quote:

Originally Posted by wnytaxman

It's official. The sales tax deduction has been signed into law and is available in 2015 and 2016. That has to be helpful for many who bought this year.

Did the $250,000 quick write of depreciation come along with that ??

Russell

ArmandV · 12-19-2015, 09:04 AM

Quote:

Originally Posted by wnytaxman

It's official. The sales tax deduction has been signed into law and is available in 2015 and 2016. That has to be helpful for many who bought this year.

As I said earlier, "I'll rejoice when it is signed into law."

YIPPEE!

lrose44 · 12-19-2015, 10:06 AM

[QUOTE=ChallengerRN;2867191]Did the $250,000 quick write of depreciation come along with that ??

Russell[/QUOTE

Actually it is $500,000 and they made it permanent.