Menu

New home sales tax deduction?

Home Tax Reduction New home sales tax deduction?

  • Jarpee Jarpee 
    Participant
    Status: Physician, Small Business Owner
    Posts: 104
    Joined: 02/06/2017

    Hey all, have a question for a friend and FP doc who built a home this year, his CPA he used last year told them to save all their sales tax receipts for home building. Is this included in SALT that likely won’t matter this year due to the standard deduction increase or is this some special credit? I can’t find anything on freetaxusa regarding this deduction and I assume it is likely not going to apply with the standard deduction. Wanted to see if I could save him $350 from using his CPA again this year. Thanks in advance!!

    #189576 Reply
    Avatar ZZZ 
    Participant
    Status: Spouse
    Posts: 386
    Joined: 06/18/2018

    Not deductible. But will count towards basis in home wrt any future sale and cap gains.

    #189635 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7117
    Joined: 01/09/2016

    I don’t see why he should pay a CPA to answer this question. The sales tax can be considered a tax on a big ticket item but it is lumped into the SALT deduction – sounds like it won’t be any help for your buddy. It also sounds as if the CPA may not be as familiar with his client’s overall situation as he should be.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
    https://fox-cpas.com/for-doctors-only/

    #189653 Reply

Reply To: New home sales tax deduction?

In case of a glitch or error, please save your text elsewhere, clear browser cache, close browser, open browser and refresh the page.

Notifications Mark all as read  |  Clear