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Posted by jack on August 22, 2008, 10:16 am
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I am going to build something for a non-profit. (in NYS)
Ordinarily I can buy supplies tax free, but then I have to charge the buyer
sales tax. In this case I will be donating it rather than selling it, so I
can't charge them tax. So, can I still buy it tax free?
Alternately I could use their tax exempt certificate, but then I suppose
they would have to reimburse me for the purchase, and I would have to make a
cash donation. Or not?
This isn't just for income tax is it?
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Posted by Stuart Bronstein on August 22, 2008, 11:05 am
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> I am going to build something for a non-profit. (in NYS)
>
> Ordinarily I can buy supplies tax free, but then I have to charge
> the buyer sales tax. In this case I will be donating it rather
> than selling it, so I can't charge them tax. So, can I still buy
> it tax free?
>
> Alternately I could use their tax exempt certificate, but then I
> suppose they would have to reimburse me for the purchase, and I
> would have to make a cash donation. Or not?
Depends on which state you're in. In some states nonprofits may be
exempt from sales and use taxes, and in some states they are not.
If your nonprofit is exempt from sales tax, I'd donate the cash to buy
the supplies and have them buy them.
But be careful. Just because an organization is a nonprofit for income
tax purposes does not automatically give them an exemption from sales
and use tax. In California, for example, nonprofits have to pay sales
tax - at least they did the last time the issue came up.
Stu
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by Seth on August 22, 2008, 2:53 pm
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>
>> I am going to build something for a non-profit. (in NYS)
>>
>> Ordinarily I can buy supplies tax free, but then I have to charge
>> the buyer sales tax. In this case I will be donating it rather
>> than selling it, so I can't charge them tax. So, can I still buy
>> it tax free?
>>
>> Alternately I could use their tax exempt certificate, but then I
>> suppose they would have to reimburse me for the purchase, and I
>> would have to make a cash donation. Or not?
>
>Depends on which state you're in. In some states nonprofits may be
>exempt from sales and use taxes, and in some states they are not.
He said New York, in which they are exempt from paying sales tax on
stuff they purchase for their own use.
Seth
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Bill Brown on August 22, 2008, 6:22 pm
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On Aug 22, 2:53 pm, se...@panix.com (Seth) wrote:
>
> He said New York, in which they are exempt from paying sales tax on
> stuff they purchase for their own use.
>
By "they" I presume you mean the non-profits.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Seth on August 25, 2008, 12:23 pm
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>On Aug 22, 2:53 pm, se...@panix.com (Seth) wrote:
>>
>> He said New York, in which they are exempt from paying sales tax on
>> stuff they purchase for their own use.
>
>By "they" I presume you mean the non-profits.
501(C)(3) organizations are exempt from paying NYS sales tax on
purchases for their own use. (I don't know about other categories of
non-profits.) There are some filing requirements to get the
exemption, I think (but it's automatic).
Seth
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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