Question

Deduction of sales tax for building materials for new fence

Forum|Forum|1 year ago
April 15, 2024
1 reply
0 views

Paid someone to build a fence last year to perimeter of our second home. Can I deduct sales tax I paid associated with the cost of the building materials?

T

TomK2023

Yes, the sales tax on Building materials for a major renovation or substantial addition to a home, if you paid the general sales tax rate yourself or your contractor was authorized to purchase these materials per your instructions or building contract.. However, remember, the limit for deducting sales tax, and other taxes is limited to $10,000.

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J

JJmuppet

Where do you input this information on the Intuit tax program?

IsabellaG

Enter this in the Deductions And Credits section of TurboTax. In TurboTax Online, follow these steps:

On Sales Tax, click Start.
On How do you want to enter your sales tax info? select EasyGuide.
On Places You Lived, enter your state(s) and the dates you lived there
On Major Purchases, say yes, you bought major items in 2024.
On Enter Major Purchases, select the type (building materials, the description, the cost excluding sales tax, the sales tax paid and the sales tax percentage.
Continue through the section and TurboTax will calculate the deduction for you.