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use tax

Discussion in 'Newbie Forum' started by 149motorsports, Oct 16, 2008.

  1. 149motorsports

    149motorsports Active Member

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    im from pa and pay 7% tax, just bought a graphics cd off ebay, called the state today and said i had to pay 7% on on 150$, which is $160.50, for business deductions can i write off the whole $160.50? thanks
     
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  2. SignBurst PCs

    SignBurst PCs Very Active Member

    Wow! You are a honest person... use tax is so often overlooked! Good for you!
     
  3. Shovelhead

    Shovelhead Major Contributor

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    I think you paid $260.50.....didn't you?
     
  4. OneUpTenn

    OneUpTenn Active Member

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    $260.50... plus .50 a mile to go pick it up....plus the $20 meal you ate on the way there where you talked to the clerk about a sign......
     
  5. jiarby

    jiarby Major Contributor

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    Ask on a CPA/Tax forum, not a sign forum!

    Here in AZ I would say that the graphics CD would be exempt from Use Tax under Exemption #17: "Machinery or equipment used directly in the following processes: JOB PRINTING. " (AZ TPT Form 5000)

    Maybe even #3: "Tangible personal property to be incorporated into a taxable contracting project"

    Actual mileage may vary... consult your local tax weenie. I doubt AZ statutes apply in PA.
     
  6. 149motorsports

    149motorsports Active Member

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    I rather pay the few bucks than it come haunt me later on, dont need more problems:biggrin:..yea so i ask the person on the phone, i said the cd will be used for making what i sell, i told her im not reselling the cd, but then cant all businesses expenses (this being one) be written off on schedule C form 1040 as equipment including the tax i paid as if i bought it locally??
     
  7. BobM

    BobM Very Active Member

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    I would call it "supplies" and write if off as a job expense. I only report "assets" costing over $500 that have a 3 year life span or more.
     
  8. B Snyder

    B Snyder Very Active Member

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    jiarby is correct. If you have sign making related questions I think you're in the right place to get a correct answer from a sign making professional 99% of the time. You should seek out the advice of a tax professional for tax related questions.
    FWIW, I would never trust information that I received verbally from a state employee.
     
  9. 149motorsports

    149motorsports Active Member

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    sorry, i just thought i would ask since people encounter same questions i might have when buying and doing use tax.
     
  10. SignTech

    SignTech Guest

    7% ? which PA? Ours is 6% was the Ebay seller in PA? Hell ya it helps you produce right? I write it all off ..........
     
  11. jiarby

    jiarby Major Contributor

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    The person answering the phone at the tax office will ALWAYS say that you have to pay tax. They do not want to be liable for dispensing incorrect advice. If I was running the tax office they would just say "I dunno... check with your CPA"

    8.55% here in QC
     
  12. 149motorsports

    149motorsports Active Member

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    yes, i told her it is what produces my product, bought out of pa, i pay 6% state of PA then 1% extra for living in allegheny, sucks huh lol...



     
  13. SignTech

    SignTech Guest

    wow didn't know that ....... ouch!
     
  14. 149motorsports

    149motorsports Active Member

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    pittsburgh and philly counties pay the extra 1%
     
  15. Checkers

    Checkers Very Active Member

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    I just went though this recently and your safest bet is to consult with your CPA. Although I would not argue with Jiarby's comments. :)
    In theory, if you resell the graphics and charge the client tax on the purchase of the clip art and graphics, you should not have to pay sales tax.

    Checkers
     
  16. jiarby

    jiarby Major Contributor

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    I believe my comments are valid for ARIZONA.... each state has it's own sales tax laws and exemptions. You have to do your own research with your local tax authority, or (as I originally advised) consult a local CPA.
     
  17. gabagoo

    gabagoo Major Contributor

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    I generally write off anything and everything that is used for my business. Why on earth wouldn't you?
     
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