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Scott DellAngelo

Well Known Member
I am pretty sure I cannot do it, but want to make sure from someone who knows more than I about taxes. I paid a healthy amount to the state of Illinois for the "use tax" or whatever it was when I finished my plane last year. Can that tax be deducted in any way?
 
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Perfect timing Scott! I'm starting mine next week, and this question has come up numerous times amongst the group down here. I don't think you can deduct it, but I have not yet come up with a definitive answer. My mother is somewhat of a tax guru, so I'll call her and see what she knows.

If anyone knows in the meantime...
 
I don't live in the Prairie State, I am not a CPA, and I didn't stay at a Holiday Inn Express last night, so take this for what it is worth. ;)

I've discussed this with people before and my understanding is that use tax (think sales tax) cannot be claimed, but if you pay property taxes (annually) on the airplane or hangar, they can usually be itemized as you would itemize property taxes paid on your house or car.

I am curious to hear what mom says.

EDIT: I also seem to recall that taxpayers have the option of claiming either their Income Tax OR Sales/Use tax as a deduction on their tax return, but not both. You can pick whichever is higher, which for most people is Income Tax. I could be wrong about this, but maybe google knows. I found this, but it looks like it was only available 2004/2005.
 
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Brads right you can choose but if you live in a city with a tax the law says city and state income tax OR sales/use tax, you choose. There is a table for each state and then you can add your big purchases to that if you have receipts. I think this year (tax year 2006) is the last for this rule but I'm not sure.
 
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