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Joined 11 months ago
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Cake day: November 1st, 2023

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  • Yes, sales taxes are a cost of doing business. Therefore deductable.

    But, the main question is should you be paying sales tax on your initial purchase of said equipment?

    If your final product that was made by your equipment will be sold and you will collect and pay sales tax on every item your equipment made, then you should not be paying sales tax on the purchase of the equipment.

    If you are buying equipment that helps you perform a service, something you won’t be charging sales on, then you are required to pay sales tax on that equipment, as you are the final user.

    P.S. this is just for my state. Call your states tax commission and they would be glad to fill you in on what you need to do.