Can I claim the sales tax we paid for a car we bought in 2011 while we were non-residents of the US & deemed residents of Canada?
We paid $2000 in sales tax for a car we bought end of Nov 2011 in the US. I never claim the sales tax, as Schedule A for 1040NR does not show any deduction for General Sales Tax.
In 2012 we were resident aliens of the US for the whole year, and I just read about this deduction in the Instructions for Schedule A-1040. Since I took a loan and am paying it in installments over 2 years, is it possible to claim the sales tax? And how?
Or should I have claimed it on my Canadian income tax return for 2011 and where?
Thank you.
Claiming sales tax for a vehicle, non-resident of US
Moderator: Mark T Serbinski CA CPA
Lets us e correct terms. How were you "deemd resident od Canada"? That is for Cdn students studying abroad, or foreign residnts living temporarily in Canada. That was not your case, I'm sure.
As to your question:
You can only use sales tax if you (a) file a 1040, (b) itemize, and (c) use sales tax rather than sate income tax as your state deduction.
Since you did not pay the tax in 2012, you abviously can't use it in 2012.
As to your question:
You can only use sales tax if you (a) file a 1040, (b) itemize, and (c) use sales tax rather than sate income tax as your state deduction.
Since you did not pay the tax in 2012, you abviously can't use it in 2012.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Thank you for your reply, nelsona. So no tax credits on my US return.
Deemed resident of Canada: I used that term because we left Canada after mid-year; therefore, for tax purposes we were considered residents.
So, if a Canadian resident buys a foreign car, he/she cannot claim foreign tax credit for the sales tax on that car on his/her Canadian income tax return, is that right?!
Deemed resident of Canada: I used that term because we left Canada after mid-year; therefore, for tax purposes we were considered residents.
So, if a Canadian resident buys a foreign car, he/she cannot claim foreign tax credit for the sales tax on that car on his/her Canadian income tax return, is that right?!
That is correct.
You were a Cdn resident until you left, an emigrant for the remainder of that year, and a non-resident thereafter.
You were a Cdn resident until you left, an emigrant for the remainder of that year, and a non-resident thereafter.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best