Tax Law (Questions About Taxes)/sales and property tax

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Question
Dr. Stancil,

I reside in Polk County, Florida. I want to make sure I take the maximum deduction for my sales tax. I used the tax table to take my deduction but taxact.com says I can also deduct taxes on my purchased vehicles but only at the general rate. We bought a boat and car during 2012. Do I just look at the sales tax amount on my purchase agreements and calculate what the amount what be at 6%?

Also, for my personal property tax, I read that I can deduct the amount I paid on vehicle registrations that was based on the vehicle's value. How do I find how much of the registration was based on the vehicles value and does this apply to boats as well?

Thanks for your help!

Answer
CJ,

Thanks for your question.

You can take the tax (at 6%) paid on the vehicle and boat.  This amount of tax paid should be shown on your purchase invoice.  Note that there is an additional $50 amount (at least for the car) listed as local or county tax.  That amount is not deductible.

In Florida, the vehicle registration is not based on the value of the vehicle so nothing is deductible there.  Bummer.

Hope this helps.

John Stancil, CPA  

Tax Law (Questions About Taxes)

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John Stancil, CPA

Expertise

I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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