I have a couple of major confusions about deducting sales taxes on major purchases on 2007 US Income tax (in addition to the general sales tax deduction.) I'm not sure if I really have a TurboTax question or a question about the tax code. The issue begins with me having had two remodels: one on my primary residence and one on a second home.
(1) The IRS web site (document FS-2006-9, January 2006) says you deduct sales tax on "major renovation of a home," but TurboTax says you can deduct sales tax on "building materials." These are pretty different. Which is right?
(2) I live in Washington State, which the general sales tax differs from county to county. I understand you cannot deduct a major purchase if the sales tax is not at the general rate. But I paid different general rates in different counties and TurboTax won't let me deduct items at different rates.
Any advice would be much appreciated.