Kubota a Tax deduction?

[Agrantina]

I thought (might be the problem) is that I can use all my sales tax--including big ticket items in my deductions? So it would be all general everyday sales tax on things I buy and also use the sales tax on the tractor as a deduction. In the part of TN I am in we have 9.25% sales tax. Will do more checking into but some years ago I bought my RV and used the sales tax from it on the itemized deduction... any other words of knowledge would be helpful...

AndyG

 

[JakeBrake]

I thought (might be the problem) is that I can use all my sales tax--including big ticket items in my deductions? So it would be all general everyday sales tax on things I buy and also use the sales tax on the tractor as a deduction. In the part of TN I am in we have 9.25% sales tax. Will do more checking into but some years ago I bought my RV and used the sales tax from it on the itemized deduction... any other words of knowledge would be helpful...

AndyG

Farmers use income tax schedule "F" to account for profit and loss from farming. basic Turbotax will step you right through it, including depreciation on your tractor and other equipment. The trouble is you have to show a profit in three out of five years or you will be reclassified as a "hobby farmer" which means your deductions can only equal your profit. In other words - no deduction.

 

[Agrantina]

JakeB- If someone uses the $2k of sales tax they paid when they bought a new car as a sales tax deduction. Why cant I simply do the same with the sales tax that I paid (about 1200.00) on the tractor? I beleive if you can use Boats, cars, RVs and other motorized vechiles sales taxes as -big ticket items-then I can use the tractor the same way. I am not trying to use the total amount of what I paid for the tractor as a deduction as you would in a business just the sales tax I paid... I looked into it today-have more checking to do- but I beleive I can...

AndyG

 

[LD1]

JakeB- If someone uses the $2k of sales tax they paid when they bought a new car as a sales tax deduction. Why cant I simply do the same with the sales tax that I paid (about 1200.00) on the tractor? I beleive if you can use Boats, cars, RVs and other motorized vechiles sales taxes as -big ticket items-then I can use the tractor the same way. I am not trying to use the total amount of what I paid for the tractor as a deduction as you would in a business just the sales tax I paid... I looked into it today-have more checking to do- but I beleive I can...

AndyG

You CAN use the sales tax as a deduction for ALL purchases you made if you have reciepts to show for them. This incudes more than just major purchases. Things like eatting out, trips to walmart, lowes, whereever. All can be deducted.

BUT unless you paid more in state and local sales taxes than state and local income taxes, you are foolish to claim the sales tax. Because you can only claim one or the other. In most peoples cases, they pay more in income taxes than sales taxes.

 

[Agrantina]

Thanks LD-- we dont have state tax in TN, so I will just have to do the math and see which one works the best... When I bought sold and bought another RV (years ago) it worked out better to use that sales tax-- becuz all that was done in the same year... Might help me this year with the tractor???? I guess one day I will hire someone to do it? But for now I just spend all Jan-Feb learning about the tax laws what I can do--Fun Fun...:confused2: :confused2:

AndyG

 

[LD1]

Thanks LD-- we dont have state tax in TN, so I will just have to do the math and see which one works the best... When I bought sold and bought another RV (years ago) it worked out better to use that sales tax-- becuz all that was done in the same year... Might help me this year with the tractor???? I guess one day I will hire someone to do it? But for now I just spend all Jan-Feb learning about the tax laws what I can do--Fun Fun...:confused2: :confused2:

AndyG

IMO a tax preparer is well worth the money. My guy charges me $120. It would cost me $80 to file online with turbotax. It only takes him an hour and I can assure you he saves me MORE than the $40 difference.

 

[TripleR]

IMO a tax preparer is well worth the money. My guy charges me $120. It would cost me $80 to file online with turbotax. It only takes him an hour and I can assure you he saves me MORE than the $40 difference.

We did our own for many, many years, but when we started using an accountant, we came out much better. Ours finally became too complicated, but wish we had done it earlier; depends on your situation.

 

[LD1]

We did our own for many, many years, but when we started using an accountant, we came out much better. Ours finally became too complicated, but wish we had done it earlier; depends on your situation.

I used to do mine too when they were simple. 1 W2, No house, no major write-offs.

But then I bought a house, got married, had kids, Plow snow and get 1099'ed, sell wood, etc. A good tax pro is well worth the little bit they charge IMO

 

[LD1]

On a side note, last year I tried to do my taxes online with TurboTax. I have had my tax guy do it for the last 3 so I had my preious returns to use as a guide. Going through all the steps with the "deduction maximizer" etc, and check and recheck, and going as far as I could without actually filing, turbotax wanted 79.99. My $120 tax guy retrned me about $300 more than TT. Nuf said. He will be doing my taxes again this year.

 

[TripleR]

On a side note, last year I tried to do my taxes online with TurboTax. I have had my tax guy do it for the last 3 so I had my preious returns to use as a guide. Going through all the steps with the "deduction maximizer" etc, and check and recheck, and going as far as I could without actually filing, turbotax wanted 79.99. My $120 tax guy retrned me about $300 more than TT. Nuf said. He will be doing my taxes again this year.

Yeah, we used TT for a long time and for a long time it worked well, but like you as things got more complicated, it just was not worth the hassles. You don't need a lot of income to benefit from a professional. Even if it cost me more than I got back, my sanity is worth the little extra money.