Hi everyone! In the video, we discuss selling fixed assets and possible sales and use tax consequences associated with those sales.
Key Takeaways:
Sales tax is a transactions tax. That means that you must understand the sales and use tax ramifications for each transaction.
For example, when an item was purchased initally, that is one transaction. When the same item is sold again, that is another transaction.
When selling fixed assets, it is important to realize that there may be sales tax consequences related to the sale.
It is also important to know that auditors routinely review federal tax returns and fixed asset ledgers to determine if fixed assets have been sold.
If the transaction is classified as an occasional sale (i.e., this type of transaction does not happen often), sales tax may not be due.
It is important to know whether the sale can be classified as an occasional sale criteria in the jurisdiction where you conduct business.
Our mission to provide a resource so business owners, accountants and bookkeepers can understand sales & use tax compliance. We know that sales and use tax laws are not the easiest to understand. Our focus is on empowering you with a framework and general understanding, so you know what questions to ask and where to go to get the information you need to stay on the right side of sales and use tax compliance.