On Freshalloys, Grubbs said to "take advantage of the tax break that "W" gave us Texans!". Can someone give me any details? Thanks.

 

Because Texas has no state income tax, we are being cheated out of a tax deduction that most other states get... so for 2004 & 2005 any state that does NOT have a state income tax will be able to deduct sales tax for the above mentioned years.
Cool eh?

 

LOL! And I thought I was getting cheated for being taxed so high in MN.

What I think stinks is having to claim the tax return as income. Now if the state and feds overtaxed you and owe you money, why do you have to pay taxes on money that was already taxed from you?

 

Is this for real? Does anyone have a link to this? I live in Florida, and we don't have a State Sales tax. If I could writ e off my sales tax on my 04 Sedan.. I'd be THRILLED!

 

I didn't know about this either but found a link ... http://www.bankrate.com/brm/itax/20041012b1.asp. This is for real!

 

calejohnson.. you just made my year dude! I can deduct my tax on my car, plus all the tax on the alarm and audio stuff!!! Thank you

 

tgenius,

Our sales tax, King County Washington, is 8.8%. What's yours in Florida?

Cale

 

wow.. thats high.. we pay 7.0 in Miami Dade, though on my car it was only 6.5 since over 10k I think it drops down due to some law.. but its still $1550 I'm gonna include!

 

Look @ www.irs.gov for Publication 600. It's the answer.

 

Smooth Z, the reason you have to claim a tax refund as income the next year is because you got a deduction from your federal income on Schedule A for State tax withholdings the previous year. Enterprising people would send a large (say $10,000) check to their State for estimated State tax payments, when in fact they knew they did not owe anything to the State. They then could reduce their Federal taxable income by the $10,000 on Schedule A, while receiving the $10,000 back from the State a couple of weeks later when they filed their State return. Confusing, but I hope this helps.