Tax write off question

[John Morgan]

If you buy $100 worth of sheet rock for your rental property and the tax is $8, how much can you write off on your taxes? The whole $108 or just the $8 in taxes? I assumed the whole $108 amount since it was building materials. But I just read you can only deduct the $8 in tax. Doesn’t seem right.

[Michael Plaks]

@John Morgan

I suspect you were reading about improvements to your personal property, not investment properties. If you upgrade a kitchen in your house, you can only deduct the sales tax paid on materials, as your personal itemized deduction.

However, the real benefit of this move is to protect your marriage.