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Using the IRS’s “Sales Tax Deduction Calculator” (and Google?), determine the optional sales tax deduction for Timmy and Tammy for their 2020 Form 1040:   Filing status: MFJ Income:          $280,000 Dependents: 4 (kids 17 and younger) Zip Code:       75080 City:                Richardson County:          Dallas   Additional facts:   Timmy and Tammy purchased two vehicles during 2020 –  New BMW, $42,000, cash purchase, no trade-in Used Lexis, $29,000, $4,000 cash, $25,000 note, no trade-in   Timmy and Tammy’s sales tax deduction for 2020 is $______.

Using the IRS’s “Sales Tax Deduction Calculator” (and Google?), determine the optional sales tax deduction for Timmy and Tammy for their 2020 Form 1040:   Filing status: MFJ Income:          $280,000 Dependents: 4 (kids 17 and younger) Zip Code:       75080 City:                Richardson County:          Dallas   Additional facts:   Timmy and Tammy purchased two vehicles during 2020 –  New BMW, $42,000, cash purchase, no trade-in Used Lexis, $29,000, $4,000 cash, $25,000 note, no trade-in   Timmy and Tammy’s sales tax deduction for 2020 is $______.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Using the IRS’s “Sales Tax Deduction Calculator” (and Google?), determine the optional sales tax deduction for Timmy and Tammy for their 2020 Form 1040:

 

  • Filing status: MFJ
  • Income:          $280,000
  • Dependents: 4 (kids 17 and younger)
  • Zip Code:       75080
  • City:                Richardson
  • County:          Dallas

 

Additional facts:

 

  • Timmy and Tammy purchased two vehicles during 2020 – 
    • New BMW, $42,000, cash purchase, no trade-in
    • Used Lexis, $29,000, $4,000 cash, $25,000 note, no trade-in

 

Timmy and Tammy’s sales tax deduction for 2020 is $______.

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