Asked by Melina Collins on Jul 22, 2024
Verified
Sales taxes are deductible as an itemized deduction based only on the actual amount of sales taxes paid.
Itemized Deduction
Tax deductions that allow taxpayers to list each deductible expense they qualify for, potentially reducing taxable income.
Sales Taxes
Taxes imposed on the sale of goods and services, typically collected by retailers at the point of sale and remitted to the tax authority.
- Understand the specific conditions that allow for the deduction of sales taxes and personal property taxes.
Verified Answer
CS
Chandler StricklandJul 27, 2024
Final Answer :
False
Explanation :
Sales taxes are deductible as an itemized deduction, but taxpayers have the option to either deduct the actual amount of sales taxes paid or use the IRS sales tax deduction calculator, which estimates the amount based on income and the sales tax rates in the taxpayer's area.
Learning Objectives
- Understand the specific conditions that allow for the deduction of sales taxes and personal property taxes.
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