Daryl, who had significant itemized deductions for 2015 and therefore was eligible to use Schedule A, purchased

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Daryl, who had significant itemized deductions for 2015 and therefore was eligible to use Schedule A, purchased a new vehicle in 2015 for $40,000 with a state sales tax of 10%. The allocated deduction amount for other purchases made by Daryl throughout the year, using the IRS state and local sales tax tables, would be $750. Daryl also paid state income taxes of $4,500 for 2015. Daryl's best option to legally maximize his tax savings in 2015would be to:
a. Deduct the amount of state sales tax deduction for the vehicle purchase on Schedule A.
b. Take the standard deduction.
c. Take the deduction for the state income taxes paid on Schedule A.
d. Deduct his total amount of allowable state sales tax deduction on Schedule A.
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Fundamentals Of Taxation 2016

ISBN: 9781259812774

9th Edition

Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone

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