Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 67-86

1967-1 C.B. 46

Sec. 164

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Rev. Rul. 67-86

The retail sales tax and the compensating use tax imposed on and after July 1, 1966, by the Sales and Use Tax Act (Chapter 32B, Subtitle 4A, Title 54, New Jersey Statutes Annotated) enacted as of April 27, 1966, and amended as of May 25, 1966, qualify as general sales taxes within the meaning of section 164(a)(4) of the Internal Revenue Code of 1954 and are deductible as taxes by the purchaser or consumer who pays the tax. However, where either of the above taxes is paid or accrued by an individual other than in connection with a trade or business carried on by him, it is deductible only if the standard deduction or the optional tax table is not used.