Tax Question

[YvetteH]

Can someone please clarify for me exactly what Taxable Purchases are on the sales and tax return form.
Would a lens bought out of state, where I paid no taxes, be considered a taxable purchase? What about software that I bought online?
I'm guessing all office supplies etc are not part of this as I paid taxes for them when I purchased them.
Thanks.
Yvette

[khatley]

I've always assumed but may be totally wrong that it would be something that you were not taxed for that you typically collect tax on. Like a photo you bought for yourself for example from a lab that does not charge you tax...since you are not reselling and charging tax then you have to pay that tax. As far as lens and software you do not pay tax on that since it is used in the production of your photos. I know this was due on the 20th but if you found a better answer let me know. I was not happy that night, someone came by and I never finished putting in my routing number and got fined $50 for being 15 minutes late!

[YvetteH]

Thanks for your reply Ken. Unfortunately I did not get any other feedback so just went ahead and did what i though was right. I think it is time for me to get an accountant. This is all just too confusing for me.

[sn805619]

Here's the right answer :)

"Taxable purchases are those taxable items purchased, leased or rented for personal or business use on which sales or use tax was not paid. This includes purchases from Texas or out-of-state sellers, or items taken out of inventory for use, items given away and items purchased for an exempt use but actually used in a taxable manner. Taxable purchases do not include inventory items being held exclusively for resale."

[Buddha]

You can call the IRS at 866-729-0922 and ask for 'Tax Law'. That will get you to people who will answer your questions, tell you which form to use and how to fill it in. If that isn't enough, an accountant is the right way to go. Be sure you find one who does taxes, though. They don't all do them.

[brad]

Originally Posted by Buddha

You can call the IRS at 866-729-0922 and ask for 'Tax Law'. That will get you to people who will answer your questions, tell you which form to use and how to fill it in. If that isn't enough, an accountant is the right way to go. Be sure you find one who does taxes, though. They don't all do them.

The IRS cannot answer questions about state sales tax.

[Buddha]

You're right. Sorry.