Sales Tax on New Construction

[bluemerlin]

What is the name of your state? Florida

Tax Laws in 2004 allow a deduction for sales tax if its greater than State tax. In Florida this is a slam-dunk as there is no State tax. It is also possible to list "big ticket" items to further increase the sales tax deduction.

I built a new pool this year and am trying to determine if this classifies as a big ticket item. The quote was lump sum, but I am almost certain that it must include sales tax as the contractor has to pay sales tax on materials and labor and therefore will have passed that burden onto me in his quote.

Does anyone know if I can claim the sales tax on this purchase?

[Snipes5]

The sales tax on materials, yes. Labor, no.

Snipes

[bluemerlin]

I checked with the pool builder and they said that although they pay sales tax on building materials these are not included in the quote to customers. Instead they are claimed back.

Don't know if this is true or not?

[bluemerlin]

Florida

Snipes, does your answer mean I can claim this as a "big ticket" item? The cost was a lump sum and did not state the sales tax.

Regards

[Snipes5]

Probably not. From what I understand, the IRS is taking the position that if the builder purchased the materials, the tax was essentially levied on the builder, so you may not take the sales tax, even if it was passed on to you by the builder. The only way you may take it is if YOU bought the materials and paid the sales tax to the store or company.

Yes, it sucks.

Snipes

[bluemerlin]

OK, Thanks. It was worth a try.