This ought to get alot of attention.
According to the new tax code/laws, if your state sales tax that you paid in 2004 exceeds the total of your state income tax and local income tax for 2004 combined, then you can take the sales tax as a deduction on your 2004 1040 long form (don't know about the EZ form), but you cannot take both the sales tax AND the state/local tax as a deduction. An added bonus is that each state has a particular 'flat amount' in lieu of receipts that you can add to the sales tax deduction (for those that didn't save any minor receipts). For example, say the slk350 was $55k @ 6% state sales tax, that comes to $3300 + $500 (for PA) for a total of $3800. That's if the only big expense was the car, if you had more than the car and it exceeds the state/local withholdings, then take that amount instead of the 'flat' addition. {the lawyer's weasel clause: This information only provided for advise and no guarantees or warranties apply. Check your local area for tax laws and concult a tax professional} THERE, I feel better!
CHA-CHING, come to papa$$$$
According to the new tax code/laws, if your state sales tax that you paid in 2004 exceeds the total of your state income tax and local income tax for 2004 combined, then you can take the sales tax as a deduction on your 2004 1040 long form (don't know about the EZ form), but you cannot take both the sales tax AND the state/local tax as a deduction. An added bonus is that each state has a particular 'flat amount' in lieu of receipts that you can add to the sales tax deduction (for those that didn't save any minor receipts). For example, say the slk350 was $55k @ 6% state sales tax, that comes to $3300 + $500 (for PA) for a total of $3800. That's if the only big expense was the car, if you had more than the car and it exceeds the state/local withholdings, then take that amount instead of the 'flat' addition. {the lawyer's weasel clause: This information only provided for advise and no guarantees or warranties apply. Check your local area for tax laws and concult a tax professional} THERE, I feel better!
CHA-CHING, come to papa$$$$