- quote -

But THEY may not have to pass it on to the state until a
month after the end of the quarter.

--
This account is subject to a persistent MS Blaster and SWEN attack.
I think I've got the problem resolved, but, if you E-mail me
and it bounces, a second try might work.
However, please reply in newsgroup.

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- quote -

Well, think about it this way: Had you paid an in-state
vendor, they would have collected the sales/use tax up front
(and that's pretty "immediate").

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"D. Stussy" wrote:
- quote -

OK -- it's not LATE until April 15 of the next year, but
I'll take your word for it that it's due immediately.

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Arthur L. Rubin wrote:
- quote -

As an adjustment to basis. The use tax itself is due and
owing as soon as the item is put into service (if not sooner
- i.e. state includes "storage within the jurisdiction as
use").

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Herb Smith wrote:

- quote -

How does this apply (for a cash-basis taxpayer) if the
use tax is not paid until the next year?

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JanZtaxNOSPAM wrote:

- quote -

I would say not. It capitalizes into basis, just like if it
had been paid as sales tax at purchase.

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janztaxnospam[at]aol.com (JanZtaxNOSPAM) wrote:

- quote -

for business purchases, sales and use tax are part of the
purchase price, not a separate deduction. If the purchase is
depreciable, the use tax is part of the basis.

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"JanZtaxNOSPAM" <janztaxnospam[at]aol.com> wrote:

- quote -

Yes.

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JanZtaxNOSPAM wrote:

- quote -

The use tax adds to your client's basis in the computer
equipment. Use tax on items consumed (office supplies, for
example) are deductible.

Regards,
Bill
~~~~
Associate Professor of Accounting
College of Business & Economics
Longwood University
http://www.longwood.edu/staff/wpbrown

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JanZtaxNOSPAM wrote:

- quote -

Sure, as long as she is ia proprietor, makes no difference.
HOWever.... if a partnership or corp, then the usual other
rules apply.

- quote -

As smooth as.... 1. a glass 2. a baby's bottom.
3. my 18 year old Balvenie Doublewood Scotch whisky.

Cheer$,
Harlan Lunsford, EA n LA

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JanZtaxNOSPAM wrote:

- quote -

A small technical point first. CA is not asking taxpayers to
pay use tax on their income tax returns. CA is reminding
taxpayers of their obligation to pay use tax and is
providing a voluntary option to pay those taxes on either
the income tax return or directly to the CA Board of
Equalization using the form found in BOE Pub 79B.

Assuming this person does not have a seller's permit, then
payment of the use tax on the income tax return is valid and
would be treated in the same manner one treats sales tax.
It is part of the cost of the product. She could deduct the
expense with the deduction for the product purchased or
depreciate it depending upon the item.

--
Alan
http://taxtopics.net

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janztaxnospam[at]aol.com (JanZtaxNOSPAM) writes:

- quote -

Sure. It's the same as if she paid sales tax locally on a
business purchase.

Phil Marti
Topeka, KS

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As you know, California is asking taxpayers to pay use tax
on online/catalogue purchases during 2003. One client says
all the purchases she reported were for business expenses
(computer equipment) so wondered if she could deduct use tax
paid with her 2003 return as a business expense for 2004.
Makes sense to me but is it OK?

Hope your tax seasons are going smoothly.

Jan Zobel EA
Oakland, CA

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