Question

Can I include the sales tax in the price of an item I’m claiming for a deduction?

Answer

Yes. If you’re allowed to deduct certain expenses, you can deduct the full cost of the expense including sales tax.

However, you might have deducted state and local sales tax — instead of state and local income taxes — on Schedule A. If so, you can’t claim the sales tax you paid on property you contributed to a charity for both your:

  • Sales tax deduction
  • Charitable deductions

 

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