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How is an excise tax different from a sales tax an excise tax is not deductible?

Unlike general sales taxes, excise taxes are usually applied on a per-unit basis instead of as a percentage of the purchase price. For instance, cigarette excise taxes are calculated in cents per pack. And most gasoline excise taxes are imposed in cents per gallon.

How does excise tax work in Massachusetts?

The excise rate is $25 per $1,000 of your vehicles value. It is charged for a full calendar year and billed by the community where the vehicle is usually garaged. If your vehicle is registered in Massachusetts but garaged outside of Massachusetts, the Commissioner of Revenue will bill the excise.

Are excise taxes deductible?

An excise tax isnt deductible if its for a personal expense. You can deduct as a business expense excise taxes that are ordinary and necessary expenses of carrying on your trade or business.

Who will pay excise taxes?

Excise and sales taxes are two very different types of taxes. An excise tax is imposed on very specific goods and is generally the responsibility of the merchant to pay to the government.

Which of the following is the best example of an excise tax?

Answer and Explanation: The correct option is Option c. tax collected on each gallon of gasoline sold. Gasoline is one of the special products which attracts excise tax and this tax is levied at the time of sale.

Is liquor tax deductible?

The short answer is yes, alcohol is a reimbursable business expense, per the IRS. ing to Publication 463 by the IRS, a business-related meal expense include(s) amounts spent for food, beverages, taxes, and related tips.

Where does excise tax go on MA tax return?

The vehicle excise tax deduction is a federal item, and is specifically reported to the IRS on Form 1040, Schedule A, Line 7 (please see the attached image at the bottom of this answer for a visual reference).

Is an excise tax a negative incentive?

The increase in excise tax will work as a negative incentive for lower income groups who smoke, thus lowering the rate of smokers in this group.

What is an example of an excise tax?

In general, an excise tax is a tax is imposed on the sale of specific goods or services, or on certain uses. Federal excise tax is usually imposed on the sale of things like fuel, airline tickets, heavy trucks and highway tractors, indoor tanning, tires, tobacco and other goods and services.

Can I claim my excise tax in Massachusetts?

A: Yes, vehicle excise tax is a proper itemized tax deduction. Personal property tax is deductible, if it is charged on personal property, based on the value of the personal property, and charged on a yearly basis.

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How is an excise tax different from a sales tax an excise tax is not deductible?