Tax question (shudder, shudder) re sales taxes

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  • #590474

    Jeannie
    Participant

    Apologies for broaching such an unpleasant subject, but I have a tax-related question, and I’m hoping my fellow West Seattle-ites can help. In 2008, what was the Washington state tax versus the local tax? I think the total sales tax was 9 percent, but how was it broken down between state and local? Thank you, thank you!!!

    #664247

    JoB
    Participant

    we have to know this?

    AARGH!!!!!!!!!

    #664248

    jwws
    Participant

    Jeannie,

    State tax was 6.5%, local sales tax was 2.5% (includes city and RTA tax) for 2008. Sales tax as of 4/1/09 is 9.5% total.

    #664249

    Sue
    Participant

    I believe it’s also now 10% in restaurants (9.5% elsewhere).

    #664250

    EmmyJane
    Participant

    Jeannie- The sales tax increased part way through the year. Make sure you plug in the amount of days at the lower rate and the amount of days at the higher rate so you get the maximum deduction.

    Also, did you know that you can deduct tax on big purchase items on top of what is allowed by the tax formula?

    Let me know if you have any more tax questions, I’m a CPA :-)

    #664251

    Jeannie
    Participant

    Thanks for your help, everyone! Much appreciated.

    #664252

    JoB
    Participant

    thanks in advance. i am doing ours today:(

    #664253

    yumpears
    Participant

    You can look up your sales tax rate by your address:

    http://dor.wa.gov/content/findtaxesandrates/salesandusetaxrates/lookupataxrate/

    If you happen to be looking it up because you are working on your Federal taxes note that there was a rate change on April 1, 2008 so there are two rates. If your doing your tax return on paper the old fashioned way you can do a blended rate (I believe it is explained in the instructions).

    If you are doing you taxes in TurboTax you may want to set up two locations (one for each part of the year at the different rate). If you do the blended rate in TurboTax it disallows the sales tax paid on any major purchases because it cannot do the computation.

    #664254

    mom3
    Member

    EmmyJane – I have a question for you or anyone else who has run into this…..

    We sold our home at a loss. I know I cannot take that loss on our taxes. But…there is a hefty excise tax that would normally decrease the sales price of the house there by decreasing your gain. The escrow folks said that it is basically a sales tax you could possible take it off on a ‘section 1031’ sale. Is it possible to do anything with this in this situations?

    I think I am out of luck but thought I would issue a ‘Hail Mary’ out to you anyway. Thanks in advance!

    #664255

    alki_2008
    Participant

    Was this a primary residence that you sold?

    Unless I’m mistaken, a 1031 is for like-kind exchanges of investment properties…and there are a number or time-sensitive requirements involved in 1031’s, so hopefully that’s been accounted for if that’s what you’re doing.

    Definitely something you’d want to ask your tax preparer/accountant about – as escrow folks aren’t the best source of information for tax-related advice…but then, neither am I. ;)

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