Welcome Guest. Register Now!  


Non-Profit Organisation Non Profit Organisation


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 06-05-2014, 03:12 PM
Junior Member
 
Join Date: Jun 2014
Posts: 1
Non-profit support business

I am with a small non-profit religious organization located in New York State. We have a construction company that is the main source of support of the non-profit. It is my understanding, that in NY there is a sales tax on profits from construction even if you are a non-profit.

I recently read an article about LLC's that stated that if you register in a different state than the state in which you operate, that you would only pay taxes in the state in which you registered.

I'm wondering if that would apply to the NY sales tax on construction as well?

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 06-06-2014, 08:22 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by benj View Post
I am with a small non-profit religious organization located in New York State. We have a construction company that is the main source of support of the non-profit. It is my understanding, that in NY there is a sales tax on profits from construction even if you are a non-profit.

I recently read an article about LLC's that stated that if you register in a different state than the state in which you operate, that you would only pay taxes in the state in which you registered.

I'm wondering if that would apply to the NY sales tax on construction as well?

Thanks.
I am with a small non-profit religious organization located in New York State. We have a construction company that is the main source of support of the non-profit. It is my understanding, that in NY there is a sales tax on profits from construction even if you are a non-profit.==============>>>>>>>>>>>>> Many people are under the impression that just because you have 501(c)(3) status, you automatically qualify for sales and use tax exemption. Having 501c3 status allows you to apply for sales tax exemption, but does not grant it. We understand that the process of getting Sales and Use Tax exemption is complicated ;only 25 states now allow exemption from sales tax



I recently read an article about LLC's that stated that if you register in a different state than the state in which you operate, that you would only pay taxes in the state in which you registered.=========>>>>>>>>>>>I guess it depends; for example, if you move to Washington, D.C., a charitable nonprofit organization must be physically located in D.C. and file an application to qualify for a sales-tax exemption. Once an exemption application is approved and a Certificate of Exemption is issued, exemptions from sales tax are granted only if the purchases, purchaser and the method of payment are in accordance with the requirements to receive an exemption from sales tax. In other words, the purchases must relate to a charitable purpose, by a person associated with the tax-exempt organization and the payment must be made by that organization. If all of these requirements are not met, then sales tax may be imposed, even when an organization has a legitimate sales-tax exemption and a certificate to prove it. This is true in D.C. and nearly all states that offer an exemption from sales tax to nonprofit organizations.

I'm wondering if that would apply to the NY sales tax on construction as well?============>>>>>>>>>>>>>>as it varies from state to state, I guess the best way is to contact a specific city dept of Rev for more accurate info on it; a state sales tax exemption is much less certain and requires a careful reading of each state’s tax code and regulations



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



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
support chickenskin Itemized Deductions 1 03-15-2014 10:53 PM
Business makes profit because of my loan---am I taxed?!! SenorN Sole-Proprietorship 2 09-03-2012 08:29 PM
Non Profit or For Profit Tax Return? CondoHOA Non-Profit Organisation 0 11-22-2009 05:43 PM
Filing a Non-Profit or a For-Profit Federal Tax Return CondoHOA Filing Requirements 0 11-19-2009 01:54 PM
If I buy a house, sell it shortly afterwards, for a profit, and reinvest the profit.. hollowman512 Capital Gains 0 04-18-2009 03:49 PM

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
 
 
 

» Recent Tax Q&A
No Threads to Display.