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HIT THE BRAKES ON DEDUCTING GASOLINE TAX

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in Small Business Tax,Small Business Tax Deduction Strategies

Q.  Can I deduct the cost of the gasoline tax in my state under the federal sales-tax deduction?

A.  No. The gasoline tax in most states is an excise tax, not a sales tax. Therefore, this is not a tax individuals can deduct, as opposed to a sales tax on products such as TVs and automobiles. Sales-tax deductions for individuals are generally based on a state-by-state table. Tip: The federal tax deduction for sales tax officially expired after 2005, but expect it to be reinstated for 2006 returns.


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