Maya, who had significant itemized deductions for 2021 and therefore was eligible to use Schedule...
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Maya, who had significant itemized deductions for 2021 and therefore was eligible to use Schedule A, purchased a new vehicle in 2021 for $50,000 with a state sales tax of 10%. The allocated deduction amount for other purchases made by Maya throughout the year, using the IRS state and local sales tax tables, would be $750. She also paid state income taxes of $4,500 for 2021. Maya's best option to legally maximize her tax savings in 2021, assuming she was under the $10,000 limit for state and local taxes, would be to:
take the standard deduction.
take the deduction for the state income taxes paid on Schedule A.
deduct the amount of state sales tax for the vehicle purchase on Schedule A.
deduct her total amount of allowable state sales tax deduction on Schedule A.
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