• Tracking Use Tax

  Filed under Money Out, Special Transactions
  Jan 13
  As if we didn’t have enough taxes to keep up with!

  Yep, Use Tax is a little-known tax that many small businesses need to put on their radar. Most states and some city governments are putting plans in place to “cracking down” on unpaid Use Tax, and they are starting by hitting businesses hard.

  In this week’s video lesson you’ll not only learn about what Use Tax is, but how to protect yourself from getting a nasty back tax bill that could even include penalties and/or an audit.

  The old saying fits here: Fore warned is fore armed.

  

  Do you do business on the Internet? If so, you are also a target for Use Tax. The state governments are even working together as you read this to find a way to capture the lost revenue from Internet sales. So keep an eye on your state’s tax laws during the coming year.

  Share your thoughts, questions, comments, experience (outrage), or tips below on the topic of Use Tax.

  I’m always glad to hear from you….even if it is to grumble.

  ~Gabrielle

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  Tagged as: QuickBooks training, quickbooks tutorial, sales tax, tax, use tax
  
  5 Comments

5 Responses to “Tracking Use Tax”

1. 

   Kris Ward said on January 14th, 2009 at 8:14 pm

   Hi Gabrielle,

   Unfortunately I was so swamped today that I tried to join tonight’s webinar too late. In the meantime, I checked out this Use Tax seminar. Thank you. It was tremendous. I have been wondering how to track this in QuickBooks since I know it is coming. I really appreciate the clear instructions and that you pointed out that this account is an expense, not a liability. Hey…every little bit helps.

   Thanks again. So glad I found you!

2. 

   Rollin said on April 4th, 2010 at 3:21 pm

   Gabrielle,
   Thank you so much for sharing this valuable information in an easy to understand format.
   Best Regards,
   Rollin

   P.S: You are so good that I think you could teach on Lynda.com

3. 

   Chaya said on April 13th, 2010 at 2:24 pm

   Hi Gabriella, This use tax was great…I have a question for you…This semninar was about paying tax on out of state but say a contractor is buying things like hinges for woodworking and paying resale so no tax is paid. Then he sells the cabinets, and he has to pay use tax on that item…any tips on tracking this?

4. 

   Gabrielle Fontaine said on July 22nd, 2010 at 9:01 pm

   Thanks for the feedback, Rollin. Much appreciated.

5. 

   Gabrielle Fontaine said on July 22nd, 2010 at 9:03 pm

   Hi Chaya,

   If items are being purchased and included with a product that is being sold as a unit, there is no use tax to be paid! When the finished product is sold, the customer will be charged sales tax on the entire item, and then the contractor will pay the sales tax as usual. Use tax is when you buy something that is being used / consumed by the business and no sales tax was paid at the point of purchase. Hope that helps to clarify.

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