 So what if you lived in more than one locality? If you lived in more than one locality during 2022, look up the table amount for each locality using the rules stated earlier. If there is no table for your locality, the table amount is considered to be zero. Multiply the table amount for each locality you lived in by a fraction. The numerator of the fraction is the number of days you lived in the locality during 2022 and the denominator is the total number of days in the year 365. If you lived in more than one locality in the same state and the local general sales tax rate was the same for each locality, enter the total for the pro-rated table amounts for each locality in that state online too. Otherwise, complete a separate worksheet for line two through six for each locality and enter the pro-rated table amount on line two of the applicable worksheet. Okay, let's take a look at an example. Similar kind of process. You lived in locality one from January 1st through August 31st, 2022, 243 days and in locality two from September 1st through December 31st, 2022, 122 days. The table amount for localities one is $100, the table amount for locality two is $150. You would figure the amount to enter on line two as follows. Note that this amount may not equal your local sales tax deduction, which is figured on line six of the worksheet. So same kind of process here. We've got the $100 and the $150 and we're breaking it out using our fraction, the number of days in locality one, 243 over divided by the 365. Line three. If you lived in California, check the no box if your combined state and local general sales tax rate is 7.25%. Otherwise, check the yes box and include on line three only the part of the combined rate that is more than 7.25%. If you lived in Nevada, Las Vegas is not a capital of Nevada. Check the no box in your combined state and local general sales tax rate is 6.85%. Otherwise, check the yes box and include on line three only the part of the combined rate that is more than 6.85%. So what if your local general sales tax rate changed during 2022? So now obviously, you're subject to the sales tax, they're trying to figure out the average sales tax. We're trying to use a table to get a general sales tax for the locality that you're in. And now the rate has changed in that locality. Again, hopefully the software that you're using, if it's a sophisticated software can help to figure out some of these changes and do some of this math for us. But you can see how kind of messy this got because remember what this came from? First, they decided to deduct the sales tax, which I think was or state taxes on the federal tax return, which I think was a mistake in the first place. But then they needed to still give the states leeway to tax however they wanted without favoring certain people that happen to mirror the tax system of the federal government, which is an income tax system. Government wasn't taxing to be Jesus out of them. So that means that they had to include the sales tax. And obviously the sales tax is quite messy to track because then you'd have to track all your actual sales. So then they said, well, do the average sales tax to make it easy. But now we could see even that isn't quite that easy because now you have all these different kind of scenarios that can come up. You have two localities, two states, and now of course they changed the sales tax rate and the state you're in. So if you check the yes box and your local general sales tax rate changed during 2022, figure the rate to enter online three as follows, multiply each tax rate for the period it was in effect by a fraction. So you have a similar kind of thing you'd have to do, right? Because now you've got a fraction of the year that it was at one rate versus another rate. So the numerator of the fraction is the number of days the rate was in effect during 2022. And the denominator is the total number of days in a year. That's 365. Enter the total of the prorated tax rates online three. So example, locality one imposed a 1% local general sales tax from January 1st through September 30th, 2022, 273 days. The rate increased to 1.75% for the period from October 1st through December 31st, 2022. That's 92 days. So you would enter 1.189 online three figured as follows. So they have the one rate times the fraction, which is 273 divided by 365. And then they've got the 1.75 times the fraction of the 92 days divided by the days in the year 365. You can see how this method is quite this kind of thing comes up quite often when you're doing different types of problems, this kind of ratio fractioning type of thing. So it's a good tool to keep in mind, although hopefully your tax software can help you to apply it in practice. So what if you lived in more than one locality in the same state during 2022? Complete a separate worksheet for line two through six for each locality in your state. If you lived in more than one locality in the same state during 2022 and each locality didn't have the same local general sales tax rate to figure the amount, enter online three of the worksheet for each locality in which you lived, accept a locality for which you use the 2022 optional local sales tax tables to figure your local general sales tax deduction, multiply the local general sales tax rate by a fraction. The numerator of the fraction is the number of days you lived in the locality during 2022. And the denominator is the total number of days in the year 365. So example, you lived in locality one from January 1st through August 31st, 2022, that's 243 days. And in locality two from September 1st through December 31st, 2022, that's 122 days. The local general sales tax rate for the locality one is 1%. The rate for locality two is 1.75%. So you would enter 0.666 online three for the locality one worksheet and 0.585. So same kind of thing. You've got one times the fraction of the year and so on. Line six, if you lived in more than one locality in the same state during 2022, you should have completed line one only on the first worksheet for that state and separate worksheets for lines two through six for any other locality within the state in which you lived during 2022. If you checked the yes box on line six of any of those worksheets, multiply line five of the worksheet by the amount that you entered on line one for that state on the first worksheet. Line seven, enter on line seven any state and local general sales tax paid on the following specified items. If you are completing more than one worksheet include the total for line seven on only one of the worksheet. So one, you've got a motor vehicle including a car, motorcycle, motor home, recreational vehicle, sport, utility vehicle, truck, van or off-road vehicle. Obviously a larger purchase like that means that you're going to have more sales tax applied to it than you may have if you didn't have a large person purchase in that year such as that. So also include any state and local general sales tax paid for a least motor vehicle. If the state sales tax rate on these items is higher than the general sales tax rate, only include the amount of tax you would have paid at the general sales tax rate to an aircraft or a boat, but only if the tax rate was the same as the general sales tax rate. Number three, a home including a mobile home or a prefabricated home or substantial addition to or major renovation of a home, but only if the tax rate was the same as the general sales tax rate and any of the following applies. One, your state or local imposes a general sales tax directly on the sale of a home or on the cost of a substantial addition or major renovation. So if you purchased a home or renovated the home then is it subject to sales tax? If it is you would think once again like the car and the motor vehicle and the boat those would be big you know purchases they have an impact on your sales tax. So B, you purchase the material to build a home or substantial addition or to perform a major renovation and pay the sales tax directly. C, under your state law your contractor is considered your agent in the construction of the home or substantial addition or the performance of a major renovation. The contractor must must state that the contractor is authorized to act in your name and must follow your directions on construction decisions and this case you will be considered to have purchased any item subject to a sales tax and and to have paid the sales tax directly. So in other words you could see kind of the problem there you hired some a contractor you hired someone to purchase to build your home they went and bought the stuff that means that they were subject to the sales tax right when they purchased the stuff to buy your home but you're the one that's purchasing them to ultimately to buy the home and if you purchased the materials directly then you'd get to deduct possibly the sales tax. So now now the question now you there should be a system or a way that you can deduct the sales tax even though the contractor is the one that bought the stuff because you're the one that told the contractor to buy the stuff so it gets kind of messy. So don't include sales taxes paid on items used in your trade or business so if you received a refund or state or local general sales tax in 2022 see refund of general sales taxes earlier. So if you if you paid for the sales tax in on your business you bought something for the business then you would expect that you would expect that you might get a deduction but you would be deducting the whole thing including the sales tax generally you would think or putting it on the books as a depreciable asset and then deducting the depreciation as applicable under the depreciation schedules all in one lump sum because because it would include the sales tax that you'd get to deduct the business expense but if you don't get the business expense then you can only possibly get a benefit for the portion of the purchase that was for sales tax. We talked about the whole refund situation earlier so I won't dive into that again.