State and local sales tax deduction election extended.

• Author: Laffie, Lesli S.
• Position: LEGISLATION

Among other changes, the Tax Relief and Health Care Act of 2006 (P.L. 109-432, 12/20/06) extended the election to take an itemized deduction for state and local general sales taxes (instead of state and local income taxes) to tax years beginning after 2005; thus, the election is available to eligible taxpayers for both 2006 and 2007. The American Jobs Creation Act of 2004 had originally provided the election for 2004 and 2005 only.

The deduction is for actual sales tax paid if receipts are...