Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Path: utzoo!utcs!mnetor!seismo!columbia!topaz!ll-xn!cit-vax!nike!ucbcad!ucbvax!ulysses!jld
From: jld@ulysses.UUCP
Newsgroups: net.taxes,net.invest
Subject: Re: Re: IRS has budget of $160 Million???
Message-ID: <1330@ulysses.UUCP>
Date: Thu, 17-Jul-86 08:19:34 EDT
Article-I.D.: ulysses.1330
Posted: Thu Jul 17 08:19:34 1986
Date-Received: Fri, 18-Jul-86 01:10:20 EDT
References: <2eacf085.2a75@apollo.uucp>, <886@kontron.UUCP> <1360@pyuxa.UUCP> <2088@nlm-mcs.ARPA>
Organization: AT&T Bell Laboratories, Murray Hill
Lines: 23
Xref: utcs net.taxes:1167 net.invest:1582

> > 
> > While explaining the various benefits of simplifying the tax code,
> > Clayton Cramer says:
> > 
> > > same rate) takes away reason to take questionable deductions so that 
> > > you can get below a particular tax rate.  (I know: I spent an hour once
> > > adding up the state utility tax on my electricity bills to get seven
> > > dollars more deduction to drop below a taxable income level to save
> > > more than $7 in taxes.)
> > 
> > a non-allowed deduction.  I believe that the taxes on your utility
> > bills (electric, phone, etc.) are considered excise taxes, and not
> > sales taxes; excise taxes are not deductible.  I hope the IRA will
> > overlook the $7, but it looks like your hour was spent in vain :-).
> > 
> My understanding is that all state taxes, whether sales, excise, or
> automobile title, may be deducted.

This is not correct.  The IRS has very specific (and narrow) rules as to
what state taxes may be deducted.  Most excise taxes are NOT deductible.
The specific guidelines can be found in any thorough tax guide (like Lasser's).

							Jeff David