JarpeeParticipantStatus: Physician, Small Business OwnerPosts: 83Joined: 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!!February 9, 2019 at 5:01 pm MST #189576ZZZParticipantStatus: SpousePosts: 182Joined: 06/18/2018
Not deductible. But will count towards basis in home wrt any future sale and cap gains.February 10, 2019 at 7:08 am MST #189635jfoxcpacfpModeratorStatus: Financial Advisor, Accountant, Small Business OwnerPosts: 6697Joined: 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/February 10, 2019 at 8:31 am MST #189653