Pay now or pay later

[JohnT]

Since you end up having to pay the taxes on non-inventory business purchases when you file your quarterly return, what's the point in having the taxes waived at the time of purchase? Or am I missing something?

[KdLaneJr]

Your CPA could best answer this question.

Any other response from me would only be a quess.

So.., here's my guess. If you are moving a large amount of non-inventory items in your business, it would give you the ability to complete your sales first, minimizing cash outlay from your business until you have been paid for your receivable accounts.

[brad]

IANACPA and IANAL ..

Business purchases of equipment used in the direct line of manufacture of a sales taxable item (i.e. your camera, lenses, photo printers, ink used exclusively for printing photos) are sales tax free.. both before and after.

My understanding is that blank is for those items that you originally purchase for use in manufacture, but end up being used for non-tax exempt purposes... such as using your printer ink for printing ads for yourself.. or if you purchased goods for resale and end up consuming them yourself instead.

Again, IANACPA, IANAL, and YMMV

[boxofrocks]

Originally Posted by brad

IANACPA and IANAL ..

Business purchases of equipment used in the direct line of manufacture of a sales taxable item (i.e. your camera, lenses, photo printers, ink used exclusively for printing photos) are sales tax free.. both before and after.

My understanding is that blank is for those items that you originally purchase for use in manufacture, but end up being used for non-tax exempt purposes... such as using your printer ink for printing ads for yourself.. or if you purchased goods for resale and end up consuming them yourself instead.

Again, IANACPA, IANAL, and YMMV

What he said.