Deduct Sales Tax for Tractor on Federal 1040 form?

[OffBalance]

OK, this may seem off the wall, but...

I live in a state with no income tax (woohoo!). So, the IRS allows us to deduct sales tax since we can't deduct state income tax on our form 1040 Schedule A. You can either figure all the sales tax you have paid and deduct that, or you can use a table and add on any sales tax for motor vehicles, boats, aircraft, offroad vehicles and substantial home improvement.

It makes sense for me to use the table and add the tax for the listed other things. I also bought a tractor in 2005 (and paid more than for any car I ever bought). So, my question is, does the tractor I bought in 2005 count as either a motor vehicle or off-road vehicle as far as the IRS is concerned?

I called the IRS, and they could not answer and told me to use my best judgement...

 

[npaden]

I sure would think it qualifies.

 

[CarlGlas]

That's interesting that the person you spoke to with the IRS wouldn't have an answer. Texas doesn't have a state income tax either, but since the tractor I purchased last November was purchased for agricultural use, there was no sales tax on it or the implements.

Can you deduct the tax you paid for fuel?

In Texas, for every gallon of gasoline purchased, there's a state tax of 38.4 cents.

 

[RalphVa]

The feds allow you to deduct either sales tax, including any large add-ons like buying a car or tractor, OR state income tax, whichever is higher. For 2004, my sales tax was higher due to my buying my tractor. In 2005, I deducted state income tax.

For sales tax, you take actual receipts or some percentage of your income but add on any unusual items like tractor or car purchase.

Ralph

 

[LarryD]

I can't tell you what the IRS considers a tractor BUT I can tell you Navy Federal Credit Union considers them "recreational vehicles". Like I take my tractor camping all the time...absurd.

Are you sure about using the standard sales tax deduction then adding in big ticket items? I thought it was one or the other.

 

[KiotiJohn]

</font><font color="blue" class="small">( Are you sure about using the standard sales tax deduction then adding in big ticket items? I thought it was one or the other. )</font>
When I was self-employed for years, I could either keep each and every receipt for what I bought and deduct the total, or I could take the standard sales tax deduction. If one was higher than the other, that's what I took. If that included a large ticket item and it made the total higher than the standard, then that's what I would take, the total of all.

I don't know if the rule remains the same.
John

 

[npaden]

Yes, you get to deduct the standard amount of sales taxes based on the table then add any sales tax on big ticket items like vehicles, etc.