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? W.R., New London, Conn.

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.

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