How can you take the sales tax deduction for purchases outside your area? For instance, my local rate in Seattle is 9.5%. Last year we purchased a boat in Blaine, WA and we paid 8.2%. Turbo tax didn't allow me to take that deduction because the rates were different. FYI, there's no state income tax in Washington.

ANSWER

Expert Todd Alexander's Answer:

The Turbo Tax software computes a sales tax deduction based upon your local sales tax rate and income level.  If you make large purchases, such as a boat or car, manual adjustments are needed.  Once entered, the correct sales tax deduction will be computed.  Please reference Washington Adminstrative Code (WAC) 458-20-145.

Todd Alexander, CPA

California

20 yrs experience

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