Out of State use tax and daz purchases
HorusRa
Posts: 1,665
in The Commons
For those of us in the U.S., I was wondering if this is reportable on our tax forms for out of State use tax. I'm guessing it is but wanted to ask how others handle it, or their views on it.
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Yeah, it should be.
At one point *very* briefly, it was being added to the price, but that was only for a week or two, iirc. Would be a lot more convenient at tax time if it were consistenly added. We really ought to have a checkbox in our account to choose one way or another. But I suspect DAZ would find it a pita to be forwarding sales tax to states all over the country.
This is not legal tax advice & I can't speak for anyone else here about how their state income taxes work . because where I live in Tennessee we don't have any state income taxes. But maybe this info will help. when I file my fedural income taxes at the end of the year I itemize all my deductions I can, including daz products if they generated me revenue and this year I add $700 worth of daz purchases with invoces for the products that I needed to use to complete consigned work . used to generated income like book covers art work. and 2 commissioned animation I did that required me to declare those on my federal income taxes as income. so I deducted the cost of the products I was not able to charge the clients. mostly over run cost stuff.
Though I also have a lot of deductions that I add with it , like deducting my home office ,a private medical spending account over health insurance., business travel etc. You might not be able to declare all your expenditures. But you may be able to recoup some of it. which is better than nothing. So depending on the circumstances that you used to declare the daz products for as a deductions and how it was used to created income. just remember the IRS is pretty stringent on 1099's deductions if you get audited, so you want to make sure you document your expenditures of the actually use of what products were needed to generate the income your declaring.. . I'm not sure about if Game licenses can be used . But according to the IRS if it helps you create income it maybe permitted as a deduction as well . you can always call the irs when you have a question. I do all the time. Because when it comes to the IRS I found when in doubt its always better to ask what is permitted rather than ask for forgiveness for ignorance later.. learned that the hard way..lol
Tax Topics - Itemized Deductions https://www.irs.gov/taxtopics/tc500.html
Contact Your Local IRS Office https://www.irs.gov/help-resources/contact-your-local-irs-office
I am guessing this really depending if you live in the same state as the company your buying the products from. some state tax laws requires companies to charge customers a state sales tax if they live in that same state the company resides in. Its like renderosity for example. Rendo is located in Tennessee and I live in Tennessee and there is a 9% sales tax applied every time i make a purchase at rendo, where as I have no state sales tax to pay for daz products because I do not live in the state daz haas their company in. some states like California has tried to push for universal state tax decorations law. but thankfully that never passed . though I do believe I read somewhere the fed did try to pass a internet sales tax bill which failed as well. but its just a matter of time before it happens I am sure its all about the money .
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