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Sales Taxes - My company is being audited and Im discovering

 
Shawn P Adamo's Avatar
  • Answered by:Shawn P Adamo
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Customer Question

Sales Taxes - My company is being audited and I'm discovering the laws are so damn confusing. I had an extention built on the office building. The general contractor gave me a price and I paid progressive billings. The state is questioning if this is a taxable transaction that I have to pay sales tax on......I need your opinion.

 

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State/Country relating to question: Texas

Submitted: 376 days and 21 hours ago.
Category: Tax
Value: $16
Status: CLOSED
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Expert:  Shawn P Adamo replied376 days and 21 hours ago.

Hello. My specialty is focusing on YOUR Financial needs. Financial Planner/Business Owner for 20 years. CPA,PFS,QFP,GMMA.

 

Normally capital expenditures are NOT sales taxed. Let me double check because in NJ it would not be taxable.

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Expert:  Shawn P Adamo replied376 days and 21 hours ago.

Not sales taxed. see page 3 .

 

In the few states where services are presumed to be taxable, it is important to keep in mind that services in those states would follow the same taxable default rule as tangible personal property unless they are specifically made exempt by statute. In other words, in these taxable service states, a service isn't exempt just because it isn't identified in the statutes as taxable. The only exempt services in these states are those that are specifically identified as exempt. Listed below is a breakdown of the presumptions applicable to the forty-six taxable states:

1) Presumed "Taxable" Service States (4) - HI, NM, SD and WV

2) Presumed "Non-Taxable" Service States including DC (42) - AL, AR, AZ, CA, CO, CT, DC, FL, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MO, MN, MS, NC, ND, NE, NJ, NV, NY, OH, OK, PA, RI, SC,

TN, TX, UT, VA, VT, WA, WI, and WY

 

http://www.cch.com/press/news/CCHWhitePaperTaxabilityOfServices.pdf

 

 

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Expert:  Shawn P Adamo replied376 days and 21 hours ago.

http://www.brownstoner.com/forum-archive/2007/08/capital-improve-1/

 

just documentation.

Expert TypeCPA, PFS, QFP, CGMA
Category: Tax
Pos. Feedback: 96.6 %
Accepts: 424
Answered: 5/9/2012

Experience: Financial Planner/Business Owner for 20+ years.

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Expert:  Shawn P Adamo replied376 days and 21 hours ago.

if you have no further questions I'll leave you to accept.

 

Enjoy the NO sales tax!!!

 
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