As we head into summer with long weekends and vacation vibes ahead, it’s also a savvy time to think about your spending, especially on larger purchases like appliances for your home or even a new car. You might have noticed that the prices of various items can sometimes fluctuate during the summer. While many factors influence these prices, keeping an eye out for strategic shopping opportunities can help you save.
One smart way to potentially offset any price increases you might see on things like appliances, furniture, electronics, and even everyday household goods is to take advantage of summer sales events, especially those around 3-day weekends like Memorial Day, Fourth of July, and Labor Day. Retailers often offer significant discounts during these periods to attract shoppers. Planning your larger purchases around these sales can lead to substantial savings.
Similarly, if you’re considering a new car, summer and holiday weekends are opportune times to shop. Dealerships frequently have special promotions and incentives during these periods to boost sales. Doing your research ahead of time and being ready to negotiate during these sales events could help you secure an even better price.
Don’t Forget to Add the Tax
Remember that sales tax is usually calculated as a percentage of the final purchase price. By taking advantage of discounts and potentially lower prices during sales events, you’re not only saving on the item itself but also on the amount of sales tax you’ll pay. So when you’re negotiating don’t forget that the sticker price likely doesn’t include the additional tax so don’t forget to add that in the budget. Every little bit counts!
If you purchase a car, keep a copy of your purchase records to possibly deduct the sales tax paid on your taxes. Note that in order to deduct the sales tax paid on your vehicle you will need to choose between state and local income tax or state and local sales tax deduction and the total deduction is capped at $10,000.
If you’re self-employed you can deduct either the actual expenses you had for your vehicle related to your business or deduct $0.70 per business mile driven using the standard mileage rate for 2025.
As a business owner, if you purchase a qualifying vehicle that is used more than 50% of the time for business purposes you could deduct up to $31,300 for 2025.
Smart Shopping Strategies for Summer Savings:
- Plan Ahead: Make a list of any larger purchases you anticipate needing and research typical sale patterns around summer holidays.
- Compare Prices: Don’t just jump at the first sale you see. Compare prices across different retailers to ensure you’re getting the best deal.
- Be Ready to Negotiate (Especially for Cars): Don’t be afraid to negotiate the price, especially at car dealerships. Holiday weekends can sometimes give you more leverage.
- Check for Rebates and Incentives: Manufacturers and retailers often offer additional rebates or incentives during sale periods, so be sure to look for those.
- Monitor Your Credit Health: Prior to making any significant purchases, especially those that might require financing, it’s prudent to check the health of your credit score. A higher credit score can help you qualify for better financing rates and incentives. Visit Credit Karma for insights and assistance in understanding your credit profile.
TurboTax is Here to Help
While TurboTax doesn’t directly influence the price of goods or cars, we’re here to help you manage your overall financial picture. By being smart about your spending and taking advantage of opportunities to save, you’ll have more money in your pocket come tax time and beyond. Our experts can help you understand the tax implications of all your financial decisions, ensuring you’re filing accurately and helping you save on your taxes. Happy summer saving!
