Comments on: Tracking Use Tax

By: Gabrielle Fontaine

Gabrielle Fontaine — Fri, 23 Jul 2010 01:03:26 +0000

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.

By: Gabrielle Fontaine

Gabrielle Fontaine — Fri, 23 Jul 2010 01:01:10 +0000

Thanks for the feedback, Rollin. Much appreciated.

By: Chaya

Chaya — Tue, 13 Apr 2010 18:24:47 +0000

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?

By: Rollin

Rollin — Sun, 04 Apr 2010 19:21:21 +0000

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

By: Kris Ward

Kris Ward — Thu, 15 Jan 2009 00:14:54 +0000

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!