MartySantic
Well Known Member
You guys that have recently had to pay a registration fee and/or a sales tax/use tax on your RV-12 kits may want to look at this. For that matter, any of the kits.
Per a conversation with a guy at the Iowa Department of Revenue.
The sales tax/use tax ($3552 for me, 6% of my cost for the kits) is DEDUCTIBLE on the federal form per the instructions on Page A-5 and Page A-6 in the Form 1040 INSTRUCTIONS booklet and the calculation of the backside of Schedule A. We are limited to the 1st $49,500. So for myself, $2970 (6% of $49,500) is deductible on Line 7 of the FEDERAL Schedule A.
In Iowa, may be/will be different in other states. The sales/use tax, at the moment is NOT deductible on the IOWA Schedule A. The IA tax rep, indicated there is currently a bill before the IOWA legislature to get the IOWA tax law in line with the federal tax law. He expects this to happen in the next few weeks. If passed by the Iowa legislature the sales/use tax we paid will be deductible of the IOWA Schedule A. Such is specifically prohibited right now if you look at Iowa's Schedule A, Line 6.
Take this for what it is worth. I am certainly NOT a tax attorney or expert. If you get some other advice from your tax guy, let me know!! I certainly do not want to be an outlier.
LATE ADD.....My CPA does NOT agree with the the guy at the Iowa Department of Revenue. SO, more research is needed.
Per a conversation with a guy at the Iowa Department of Revenue.
The sales tax/use tax ($3552 for me, 6% of my cost for the kits) is DEDUCTIBLE on the federal form per the instructions on Page A-5 and Page A-6 in the Form 1040 INSTRUCTIONS booklet and the calculation of the backside of Schedule A. We are limited to the 1st $49,500. So for myself, $2970 (6% of $49,500) is deductible on Line 7 of the FEDERAL Schedule A.
In Iowa, may be/will be different in other states. The sales/use tax, at the moment is NOT deductible on the IOWA Schedule A. The IA tax rep, indicated there is currently a bill before the IOWA legislature to get the IOWA tax law in line with the federal tax law. He expects this to happen in the next few weeks. If passed by the Iowa legislature the sales/use tax we paid will be deductible of the IOWA Schedule A. Such is specifically prohibited right now if you look at Iowa's Schedule A, Line 6.
Take this for what it is worth. I am certainly NOT a tax attorney or expert. If you get some other advice from your tax guy, let me know!! I certainly do not want to be an outlier.
LATE ADD.....My CPA does NOT agree with the the guy at the Iowa Department of Revenue. SO, more research is needed.
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