This is the first year I’m going to be able to declare write-offs and don’t know the in-and-outs. When I give my information to my accountant, do I give him the purchase price for an item or do I include the sales tax that I paid as well.
Example: I bought a laptop for my job and the price was around $2800.00. Tax was about $200.00. Do I tell him $2800 or the total I paid - $3000?
Sorry if I sound like a newbie, I really don’t have any experience with this.
I believe you give the total price including taxes, shipping, etc.
As a general matter, you should give your tax professional all of the information you have, and let him or her decide what is relevant.
Also as a general matter, the tax treatment of a purchase includes sales taxes and other charges and expenses necessary for the purchase, but you should ask your own tax professional about your specific situation.
Thanks for your help. I’m going to prepare my information both ways. I just wanted to have everything ready to go as to not take up more time than I have to. His time is my money.