If you itemize deductions for 2012 on Schedule A (Form 1040), you may deduct your 2012 payments of:
Congress is expected to extend to 2012 the option to deduct state and local general sales taxes in lieu of state and local income taxes (16.3), but had not done so when this book went to press; see the e-Supplement at jklasser.com for an update.
In figuring deductible state or local income taxes, include the amount of state or local income tax withheld from your 2012 pay, any state or local estimated tax for 2012 that you paid in 2012, and any part of a prior year refund that you credited to your 2012 state or local tax. Also, do not forget to include state and local tax that you paid in 2012 when you filed your 2011 state and local tax returns.
Taxes incurred in your business are generally deductible on Schedule C (16.9).
Claim the deduction for deductible taxes on the tax return for the year in which you paid the taxes, unless you report on the accrual basis (16.7).
Type of tax— | Deductible as itemized deduction— |
Admission | No |
Alcoholic beverage | No |
Assessments for local benefits | No |
Automobile license fees not qualifying as personal property tax | No |
Cigarette | No |
Customs duties | No |
Driver’s license | No |
Estate—federal or state | No* |
Excise—federal or state, for example, on telephone service | No |
Gasoline—federal | No |
Gasoline and other motor fuel—state and local | No |
Gift taxes—federal and state | No |
Income—federal (including alternative minimum tax) | No |
Income—state, local, or foreign | Yes |
Inheritance tax | No |
Mortgage tax | No |
Personal property—state or local | Yes |
Poll | No |
Real estate (state, local, or foreign) | Yes |
Regulatory license fees (dog licenses, parking meter fees, hunting and fishing licenses) | No |
Sales—state and local general sales tax | Yes |
Social Security | No |
Tolls | No |
Transfer taxes on securities and real estate | No |
* But see the exception for miscellaneous itemized deduction for estate tax paid on “income in respect of a decedent” (11.17).
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