Description
SALES TAX MAY BE DEDUCTIBLE! Under new legislation sales taxes for Tennessee residents may be deductible. In order to deduct the sales tax it is necessary to itemize deductions. The deduction is based upon your actual sales taxes paid or based on a predetermined table issued by the IRS based upon household income. In addition, you may be able to add the sales tax to the table for large purchase items such at vehicles, boats, etc. If you have any questions regarding the deductibility of sales tax, please contact us. Currently this deduction is available only for 2004 and 2005 tax years. This can be a major benefit to the citizens of Tennessee as well as other states. Please encourage your federal elected representatives to ensure this legislation is made a permanent addition to the tax code.