Ringing in the new year means ringing in changes in itemized deductions that affect consumers in Texas.
The stroke of midnight is not just time to pop the champagne; it's also the deadline to buy a new car if you want to take advantage of highly-coveted tax deductions that are about to go away.
Itemized sales tax, or a bucket of big ticket items, is going away, and it's not chump change. The money saved is typically thousands of dollars that people have been able to write off since 2004.
"I don't know if it's the one thing that makes the decision, but it is something that they consider when they make a decision on whether they want to go ahead and buy one today," said Ted Goldberg of Huffines Chevrolet in Lewisville.
Texas and six other states don't have state income taxes, so the federal government made it possible to write off the sales tax on big ticket items on federal tax returns. But because of inaction on the part of Congress and the White House, one of the most popular deductions will no longer be available, and that has consumers and tax experts wondering what deductions, if any, will remain.
"I think they should keep it," said CPA Michael Zinn. "Because we're losing deductions every year."
The sales tax expiration also affects things like boats and other recreational vehicles.
But things like refrigerators, washers, dryers, were never deductible in the first place, so don't get confused and think you have to run out and buy those to beat the deadlines, as they don't apply.
The average Texas resident deducted $388 in sales taxes per year.
It has also been a major driver for the state's economy.
KDFW FOX 4
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