It’s that time of the year… tax season! Tax season tends to make us all a little stressed because there is so much substance to taxes and what can and cannot be deducted. We did some research to see what in our industry may be useful for you and we have something we think you’d like.
According to TurboTax, you itemize deductions and paid general sales tax on the water softener system, you can elect to either deduct state and local general sales taxes or state and local income taxes. You’ll want to hunt around for your receipt of your water softener purchase.
If you decide to go with the general sales tax deduction, you can claim actual expenses or use the optional sales tax tables. The sales tax tables are based on your income and the number of the exemptions claimed on your tax return.
The interest which you paid may be deductible if you paid for this system with funds obtained from a home equity loan. You’d also have to be taking itemized deductions as opposed to the standard dedication in order to claim the interest which would be defined as mortgage interest.
This information isn’t to be confused with claiming water purification systems which cannot be a tax credit. We recommend that you consult with your local tax professional for any questions or concerns on claiming a water softener.