Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 10-17-2016, 07:31 PM
Junior Member
 
Join Date: Oct 2016
Posts: 1
interstate tax exemption

I purchased/ordered a mattress at store in NC and asked them to ship it to my family in CA, they didn't charge any tax. on the receipt it says "Tax exempt: interstate gift send", what does it mean? do I need to pay any use tax after that? if so who should pay for it? me or my family at CA?
thanks



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 10-18-2016, 03:04 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,233
I purchased/ordered a mattress at store in NC and asked them to ship it to my family in CA, they didn't charge any tax. on the receipt it says "Tax exempt: interstate gift send", what does it mean?=> A gift-send transaction involves a customer at a state retail store who requests that merchandise be sent to an out-of-state recipient (other than the purchaser). With respect to merchandise shipped by a NC vendor to an out-of-state , in this case CA state, recipient, your family in CA, designated by its customer , you, in NC: If the vendor is obligated by an agreement to deliver the mattress to your designee outside NC and as you are within NC when the order for the property is placed, the sale will generally be taxable UNLESS both title to and possession of the property , mattress, pass outside NC. In your case, the seller in NC does not collect sales tax.

do I need to pay any use tax after that? if so who should pay for it? me or my family at CA?=====>It is up to you. In some cases, retailers must report use tax, rather than sales tax, to the CA Board of Equalization. The most common example of a purchase subject to the use tax is a purchase of an item for use in CA from an out-of-state retailer. Out-of-state retailers who are engaged in business in CA are required to collect the use tax, whenever applicable, from the consumer, at the time of the sale; but Some sales and purchases are exempt from sales and use tax.In general, you must pay CA use tax when you purchase out-of-state items by telephone, Internet, mail, or in person and the seller does not collect CA sales or use tax and you use, give away, store, or consume the item in CA. So if you want, you may pay the use tax for your family in CA and let your family claim it on their return. Deductions for the state tax is available if they prepare their return on Form 1040 and itemize theirr deductions on Sch A, which is the only form they can report a state tax deduction on their return.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
ACA exemption pRivers5261 For 2014 0 02-23-2015 03:20 AM
returning after tax exemption vriesdephilip Income 6 01-27-2015 10:23 PM
Massachuesetts Tax Exemption pmarc C-Corporation 0 02-18-2014 12:14 AM
Spouse for tax exemption [email protected] Miscellaneous 4 02-10-2014 03:40 AM
Dependent Exemption appletango Filing Requirements 1 01-18-2007 12:08 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning