Could the Tax Deduction of State and Local Sales Taxes Save You Money?
For the last several years, taxpayers have been allowed to take an itemized tax deduction for state and local sales taxes in lieu of state and local income taxes. Although this break hasn’t yet been extended to 2014, it is still available for 2013.
It can be valuable if you reside in a state with no or low income taxes or if you purchase major items, such as a car or boat. So, see if you can save more by deducting sales tax on your 2013 return. If you’re contemplating a major purchase, keep an eye on Congress to see if the break will be revived for 2014. You may want to factor the deduction’s availability into your purchase decision.
Ciuni & Panichi, Inc. can help you determine whether deducting sales tax makes sense for you. We will also keep up to date on the status of the deduction for 2014. Please contact Jim Komos at 216.831.7171 or jkomos@cp-advisors.com for additional information and with any questions you may have regarding this tax deduction.
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