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Daryl, who had significant itemized deductions for 2018 and therefore was eligible to use Schedule A, purchased a new vehicle in 2018 for $40,000 with a state sales tax of 10%. The allocated deduction amount for other purchases made by Daryl throughout the year, using the IRS state and local sales tax tables, would be $750. He also paid state income taxes of $4,500 for 2018. Daryl's best option to legally maximize his tax savings in 2018, assuming he was under the $10,000 limit for state and local taxes would be to:

a. deduct the amount of state slaes tax for the vehicle purchaase on schedule A
b. take the standard deduction
c. take the deduction for the state income taxes pain on schedule A
d. deduct his total amount of allowable state sales tax deduction on schedule A

1 Answer

3 votes

Answer:

D.

Step-by-step explanation:

Legally, Daryl's best option is to deduct his total amount of allowable state sales tax deduction on Schedule A.

User Ala Eddine JEBALI
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