You might save more by deducting state and local sales taxes

Wednesday, 20 February, 2013

For the last several years, taxpayers have been allowed to take an itemized deduction for state and local sales taxes in lieu of state and local income taxes. This break can be valuable to those residing in states with no or low income taxes or who purchase major items, such as a car or boat. But this break had expired Dec. 31, 2011.

Now the American Taxpayer Relief Act of 2012 has extended it for 2012 and 2013. So see if you can save more by deducting sales tax on your 2012 return. And if you’re contemplating a major purchase, you may want to make it in 2013 to ensure the sales tax deduction is available

The blogs were developed with the understanding that Steiner & Wald, CPAs, LLC is not rendering legal, accounting or other professional advice or opinions on specific facts or matters and recommends you consult a professional attorney, accountant, tax professional, financial advisor or other appropriate industry professional. These blogs reflect the tax law in effect as of the date the blogs were written. Some material may be affected by changes in the laws or in the interpretation of such laws. Therefore, the services of a legal or tax advisor should be sought before implementing any ideas contained in these blogs. Feel free to contact us should you wish to discuss any of these blogs in more specific detail.

Steiner & Wald, CPAs, LLC

Certified Public Accountants

You might save more by deducting state and local sales taxes