Sales Tax
We realize that it is still early in the 2005 year, and yes we are all trying to scurry around and get our 2004 tax information together, but we would just like to remind you of the revitalized deduction that is taking place for 2005.
Who is this going to impact? The answer is it will impact people who pay small income tax to a state or local government, such as residents of Florida, or senior citizens who are not paying a large state tax. It is also going to benefit those of us who pay a medium amount of state tax, but who go out and purchase a large item such as a vehicle, a boat, or a mobile home. It may even be able to apply to those who are having a new home or major addition to their home built during 2005.
The whole deal here is that you can use a new sales tax table, which is being published for your “regular purchases” and you can add to it the sales tax that you pay on a major purchase to get the total sales tax paid during the year. If your sales tax is greater than your income tax you can take the sales tax as a deduction in lieu of the income tax.
Why are we bothering to tell you about it at this time of the year? Simply because now is the time to be making sure you are tracking your purchases and keeping a close tab on your sales tax that you have paid for the coming year. If you wish to track all of your sales tax, we would suggest that you start now and keep a record of all the actual sales tax that you have paid. It may in fact be beneficial to you.
If you would like more information on how to obtain the deduction for sales tax paid for a home improvement, do not hesitate to give us a call. It is an item that we feel we can provide some aggressive guidance on to your benefit.
We look forward to talking with you, and we hope that your year is proving to be a good one.
