Question for MD Tax Professionals

[Crushin It]

I bought my boat in 2013. Can I deduct the sales tax I paid under the "Vehicle and Personal Property Tax" section?

 

[xravenx]

Mark,

I asked my CPA wife and she said..............."you can choose the larger of your state sales tax or your state income tax to deduct"

I have no idea what that means........LOL

John

 

[Crushin It]

Mark,

I asked my CPA wife and she said..............."you can choose the larger of your state sales tax or your state income tax to deduct"

I have no idea what that means........LOL

John

John,

Thanks for at least asking.... I have no idea what that means either.... I'll start fishing for what my State Income tax was.... Maybe these H&R Block software programs make the determination for you.....

 

[TimTech]

You can claim the higher of your state & local income taxes or your sales tax. Not both. In my Michigan case, the sales tax on my boat purchase (plus the standard sales tax deduction found in tables) was more than the total of my state & local income taxes taken out of my checks for the whole year. So, I claimed the sales tax deduction verses the income tax deduction. See this informative article

 

[rcknecht]

Should have bought your boat in Delaware... Since I work in MD, and live in NJ I pay both state's income tax, and I can imagine affording a boat where my sales tax would exceed what I pay in State income tax... Thanks for the reminder to do my taxes...