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April 12, 2009 at 8:06 am #590474
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!!!April 12, 2009 at 2:42 pm #664247April 12, 2009 at 2:50 pm #664248
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.April 12, 2009 at 3:36 pm #664249April 12, 2009 at 4:50 pm #664250
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 :-)April 13, 2009 at 6:42 am #664251April 13, 2009 at 3:21 pm #664252April 13, 2009 at 11:37 pm #664253
You can look up your sales tax rate by your address:
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.April 15, 2009 at 5:28 pm #664254
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!April 16, 2009 at 1:34 am #664255
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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