FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Using the IRS’s “Sales Tax Deduction Calculator” (and Google?), determine the optional sales tax deduction for Timmy and Tammy for their 2020 Form 1040:
- Filing status: MFJ
- Income: $280,000
- Dependents: 4 (kids 17 and younger)
- Zip Code: 75080
- City: Richardson
- County: Dallas
Additional facts:
- Timmy and Tammy purchased two vehicles during 2020 –
- New BMW, $42,000, cash purchase, no trade-in
- Used Lexis, $29,000, $4,000 cash, $25,000 note, no trade-in
Timmy and Tammy’s sales tax deduction for 2020 is $______.
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