Taxes
4 months ago
How do I properly calculate and pay use tax for out-of-state purchases?
13
I bought $12k in equipment for my business from an out-of-state vendor that didn't charge sales tax. My accountant mentioned I might owe 'use tax' to my state. What exactly is use tax and how do I calculate it? Is it the same rate as my state's sales tax? Do I report this on my annual return or separately? What happens if I forget — is this something states actually audit for?
DR
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