Motor Home

I paid cash for a new motor home in New York State in 2010, Will the sales tax be a deduction in income taxes?

I paid sales tax on a new motor home this year will it be a tax right off. The motor home was new and has a bathroom and sleeping area just like a house. I paid cash for it.

1) The fact that the motor home has bathroom and sleeping facilities means that it could qualify as a 2nd home (assuming that it also has dining facilities). If it qualifies as a 2nd home, the interest paid can be deductible as mortgage interest. As you are not paying any interest, there is no deduction.

2) You may be able to deduct the sales tax if you itemize and you choose to deduct your state and local sales taxes instead of your state and local income taxes. You add them both up, and deduct the greater amount (but not both). Note: If Congress does not act, this deduction goes away and will be unavailable for 2010. This deduction is quite popular and I expect it to be extended but you never know with Washington.

Can"t find what you are looking for? Check out these products from Amazon.