Sales Tax Deduction

Today TaxMama hears from Milton in Florida with this question. “I’m trying to gather all my General Sales Taxes together. I’m also liable for a Florida Power & Light Co. utility bill in which they itemize a cost to me from something called a Gross Receipts Tax. Can I lump this in with my state sales tax figures?”

Dear Milton,

Have you done this in previous years?

Several tax professionals have tested the deduction for sales taxes by comparing all the receipts collected to the optional sales tax deduction in the IRS tables. Generally, unless the taxpayer is an incorrigible shopper, the tables tend to be higher. After all, you can add large-ticket purchases to the amount in the tables – like cars and yachts. (Yes, IRS will be updating it soon.)
http://apps.irs.gov/app/stdc/

As to the Florida Gross Receipts tax, I can’t find anything that indicates that this is a sales tax.

http://www.fpl.com/rates/pdf/electric_tariff_section6.pdf
You may want to consider calling the State of Florida and asking them. Or keep an eye on the Comments to today’s TaxQuip. We have tax professionals in Florida who are apt to weigh in on this issue.

Either way, keep up the good work! It never hurts to collect receipts.

And remember, you can find answers to all kinds of questions about sales taxes and other tax issues, free. Where? Where else? At TaxMama.com

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