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Show Director Explains Deduction Rules On State, Local Tax Deductions for state and local taxes on Federal income tax returns re-turns are permitted under certain cer-tain circumstances, Roland V. Wise, director of Internal Revenue Re-venue for the Salt Lake City, Utah, District, declared today. He explained, you CAN deduct personal property taxes, state income in-come taxes, and real estate taxes which are imposed on you. You can also deduct state or local sales taxes, and state gasoline taxes if the tax is imposed upon you, the consumer. Auto license 'ees, and state capitation or poll taxes also are deductible. State cigarette taxes are deductible de-ductible by the consumer in only i few states. Mr. Wise said they are NOT deductible in Utah. He added, if you had state income in-come taxes withheld from your salary, or if you made estimated state income tax payments under i pay-as-you-go plan, you can ieduct such amounts only for 'he year in which withheld or r?aid. If you are a tenant-stockholder x 'n a cooperative housing or apartment apart-ment corporation you can deduct your proportionate share of the real estate taxes paid by the cooperative. co-operative. In most cases, you cannot deduct de-duct special assessments for lavements or other local improvements, im-provements, including front-foot benefits, which tend to increase he value of your property. Nor can you deduct Social Security taxes paid on the wages of your maid or other domestic help. Mr. Wise said you may not deduct de-duct customs duties or Federal excise taxes on articles acquired by, or on services rendered to you. for personal or family use, such as automobiles, jewejry, cosmetics, telephone, air, rail, or bus tickets, etc. Taxpayers who have any questions ques-tions about deducting State or local taxes may get Document No. 5075. "Taxes," in Room 365, federal Building, Salt Lake City. If you have any other questions about your Federal income tax return, telephone your local Internal In-ternal Revenue office. |