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If you owe back sales tax can you deduct payment of these taxes or its penalties or interest?
Wiki User
∙ 15y ago
For personal income tax, sales tax under some recent rule changes, you can take either the sales tax or the state income tax paid as a deduction...one or the other (for federal tax purposes)...almost always, the income tax one is better. (The whole idea was to give a tax deduction to those people living in States that don't have an income tax and rely on a sales tax). Also, if you have a business that is part of your personal return, sales tax may be part of the business expense (Sched C) and you get to take it there - basically as part of the cost of business purchases. (Hence if this is for sales tax on your personal boat purchase or such, it would not be deductible anyway). If your a corporation, it is part of business expense, cost of goods, or the related fixed assets, as appropriate. (Sect 179 expensing may be applicable too). Generally, fines and penalties are never deductible anywhere...as bad for puiblic policy. Interest expense is only applicable in the business settings.
Wiki User
∙ 15y ago
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Can you deduct the amount you pay your tax account?
I am not sure what you mean by this or what kind of tax account you may be referring to.On your federal income tax return, you may deduct payments of various types of state and local taxes that are imposed on you within limitations. These include real estate, state and local income taxes, and sales taxes (but not both sales taxes and income taxes). You may not deduct federal incomes taxes. You may not deduct interest or penalties.A few states let you deduct federal income taxes on your state return.
Can state sales tax be deducted from your taxes?
According to the IRS, if you itemize deductions on your federal return you may deduct either state and local incometaxes or state and local sales taxes. You get to choose which to deduct, but you may not deduct both, and you can't deduct either unless you itemize deductions.Chances are pretty good that unless your state has low income tax rates and fairly high sales tax rates, you'll be better off deducting the income taxes instead, but you do have the option.
How are discounts similar to and different from sales tax?
Tax adds to the price while discounts deduct from it.
Is sales tax deductible from 2007 tax returns?
Sales tax is deductible as an itemized deduction (Schedule A), however you can deduct EITHER: -Sales Tax Paid -State income taxes paid Obviously you would want to deduct whichever is higher. This deduction can be very beneficial to people living in states that do not have an income tax, such as Florida.
What constitutes cost of sales?
cost of sales i.e. cost of goods sold include opening stock, purchases, operating expenses and then deduct the closing stock.
Can you deduct the amount you pay your tax account?
I am not sure what you mean by this or what kind of tax account you may be referring to.On your federal income tax return, you may deduct payments of various types of state and local taxes that are imposed on you within limitations. These include real estate, state and local income taxes, and sales taxes (but not both sales taxes and income taxes). You may not deduct federal incomes taxes. You may not deduct interest or penalties.A few states let you deduct federal income taxes on your state return.
If you live in NH and by a car in MA will you have to pay sales tax?
Yes, 6.25 percent sales tax on any vehicle purchased in MA is due within 20 days from anyone not registering in MA, to avoid penalties and interest.
If you live in NH and buy a car in MA do you have to pay sales tax?
Yes, ANYONE who buys a vehicle in MA must pay 6.25 percent sales tax in MA. You have 20 days in which to pay if you want to avoid penalties and interest.
You live in NH but buying a car in Ma do you pay sales tax?
Yes, anyone buying a vehicle in MA must pay 6.25 percent sales tax in MA. You have 20 days in which to pay the tax and avoid penalties and interest.
What is annualized sales?
Annual sales refers to the total sales have been made in a given year. When you deduct the expenditure from annual sales, you would be able to get your profit for the year.
What is Deposit sales?
The deposit sales is the business type of payment , the customer will have to advance the payment before buying. The diffirent between the advance payment sales and deposit sales is about , the Advance Payment - the customer will have to order first then pay regarding to the order Deposit Sales - the customer will pay first before ordering.
Can I deduct the purchase of a used car?
Not unless you use the vehicle for business purposes. You may be able to deduct the sales tax if you itemize your tax return.
Can state sales tax be deducted from your taxes?
According to the IRS, if you itemize deductions on your federal return you may deduct either state and local incometaxes or state and local sales taxes. You get to choose which to deduct, but you may not deduct both, and you can't deduct either unless you itemize deductions.Chances are pretty good that unless your state has low income tax rates and fairly high sales tax rates, you'll be better off deducting the income taxes instead, but you do have the option.
What is gross sales tax?
gross sales tax is the tax you pay on total receipts/sales. basically you can't deduct any expenses before you pay the tax.
Where can you find an online lease payment calculator?
Online Lease Payment Calculators can be found on multiple car and insurance websites. For example, car sales websites will have a calculator to determine monthly payments and overall interest on a car for sale.
How are discounts similar to and different from sales tax?
Tax adds to the price while discounts deduct from it.
What figure do you take for gross sales?
Gross sales is the amount of money received for all sales before expenses have been deducted. After the gross sales have been calculated, you may then deduct the expenses, leaving the net sales amount.
