HI ALL,
I just learned about something wonderful, at least for me. A big INCOME TAX Deduction.
I have just learned that I can deduct either State Income Tax or State Sales Tax paid. Even States that don't have income tax can deduct the sales tax they paid. You can not deduct both state income tax and sales tax. You can also deduct local sales tax like we have here in California of .05 percent for this and .05 percent for that. This is really good news. I have been worrying about income tax this year as one of my major tax shelters depleted last year. This is a reprieve for me as I bought a new motorhome this year and paid about 10,000.00 in sales tax that is deductible in addition to the table in the following attachment. Hallelujah, Praise the Lord and AMEN!! Manna from Heaven.
The following Url can be printed and includes the tables for all states as well as the IRS Form. This only applies to People that Pay US Income tax. Sorry
http://www.irs.gov/pub/irs-pdf/p600.pdf

Have fun doing your income taxes this year and send thanks to Bebop for all the money you saved
I mailed this to all the people on my email lists but if you are not on the lists then I have put it here for you. You might want to buy a keyboard, car, motorhome, boat or what ever before this month ends to get a big deduction.
Best to all, Happy New Year Bill the Bebop

Sorry to burst your bubble, but you cannot deduct BOTH!!!

If you do not have Income taxes in your state, you may deduct your actual Sales Taxes or use their tables to estimate.

If you do have an income tax, chances are you are probably making estimated payments or have payroll deductions that far exceed any sales taxes you may have paid and thus you may deduct those Income Taxes.

YOU CANNOT DEDUCT BOTH SALES AND INCOME TAXES! It's one or the other.

Nice Try, though

Bebop,

If you purchased a motor home this year, you may have special tax implications.

You might want to consult an expert.

kbrkr ... I think you missed BeBop's point ... He wrote ..."I have just learned that I can deduct either State Income Tax or State Sales Tax paid. .... You can not deduct both state income tax and sales tax."
t.

Bebop,
Better re-read the instructions with the table. You cannot itemize and use the table too. Sounds like your motorhome purchase with a 10 grand tax wallop is going to be the better way to go. Forget about the Table.

We're in the same boat with a new 40 ft Damon with a 400hp Cummins. I just finished intalling shelf brackets so the PSR 3000 can be set up all the time. Can't drive and play at the same time, tho.

Good luck with your taxes.
Ron

HI RON,
My instructions state that: You may also be able to add the following items to the tax table amount:
State and local general sales taxes paid on certain specified items.
Those specified items include Motor vehicles including recreational vehicles as well as aircraft, boats, mobile homes and home building materials etc.
I will be down in Florida for the Synthzone jam in the motorhome in April. Are you coming to it?
Bebop

Sorry BeBop....Too much Egg Nog...

It's amazing how they can confuse such a simple issue. Or maybe it's amazing how they can confuse me!

I've thought about the Synthzone Florida Jam, but I have a conflict with the schedule. Sounds like a great gathering.

Happy New Year!
Ron

[This message has been edited by Ron Pierce (edited 12-29-2004).]

The IRS manages to confuse everyone most of the time. That is why so many deductions are missed.
I just found out last year that the interest on my motorhomes was deductable as a second or vacation home. Now I have to file an amended return for prior years.
Hope you make it to the Florida Jam. I am driving over 6000 miles to make it.
BEBOP

I am bumping this to the top one time in case anyone missed it. If you made a major purchase as noted above this info can save you a tone of tax for your 2004 return.
Happy New Year, all year
Bebop