Happy Thanksgiving Drivers, you can exempt sales tax for your business purchases

i am certainly no tax attorney either. things likely vary greatly from state to state as well. generally any end user is required to pay the state and local sales/use taxes. under certain situations and exemptions a interstate trucking company is exempt from paying sales tax on equipment ect. but because these are local taxes no doubt the laws will change depending on where you are.

as far as income taxes, you deduct the total amount including the sales tax if you pay sales tax. so if you buy a part for say $10 sales tax is 2 dollars you would deduct the total of $12 for that purchase.

it is certainly your responsibility to make sure that you are following the laws correctly. if you buy a drum of oil under a sales tax exemption ment for resale and then you do not collect sales tax for re-selling it because you consumed it could potentially be a sticky situation.

 

I agree with that but in Ohio they give you a form to fill out and requires a MC or DOT and it is sales tax exemption. Haul for hire.

 

one time i broke down up in Canada and they allowed me to use my dot/mc number to be exempt from paying certain taxes on that repair bill. if you can use a local exemption by all means go for it. i was just pointing out that the blanket statement of any purchases made for you business are sales tax exempt might not necessarily be true as end user is generally required to pay the sales tax on a purchase.

in my state last time i looked into it there was no exemptions available for my use. i did at one point have a exemption certificate for re-sale, as i do occasionally buy items for resale, weather it be that i do a repair for someone else and buy parts to re-sell or i have occasionally bought truck loads of a product and re-sold to a customer. (basically they say i want x quantity of y how much delivered and i then buy the product and delver it and then charge for the product + trucking) i would buy as sales tax exempt and then collect the sales tax when sold.

however due to the fact its not a common thing for me to do i generally only have a few transactions per year that this would apply i no longer do that. instead what i do is just pay the sales tax when i purchase and then charge the exact same amount. (if i were to mark up the product it would change the amount of sales tax due) even though that's not the proper way to do it at least i can prove that the proper amount of sales tax went to the state should i ever be questioned about it. the services/labor provided you are not required to collect sales tax on so that's where i add in my profit margin rather than markup on the physical item sold.

interstate trucking is exempt in certain states under certain exemptions because it can be argued that even though the product was purchased in xyz location does not mean it will be consumed/used in xyz location.

in short the blanket statement that products purchased for a business are state local sales and use tax exempt is not necessarily true.

 

So did he just post a video of himself committing felony tax evasion?

 

Basically yes, every driver should know which states are tax exempt for truck parts if you have a mc number. I live in OK but my engine, trans, cac, clutch and many more parts were purchased in Missouri, 100% legal and proper.

If there is a tax audit of the Walmart where he used his tax I’d improperly he may receive a letter.
If you’re cheating the system it is always best to brag about on YouTube.

 

No. Oil, grease is used for the truck and is tax exempt. Among other things.Parts etc. Now if he puts the oil in his personal vehicle..then technically a tax cheat. Trucking engaged in interstate, and intrastate items are tax exempt. Most everywhere as it is also deducted from federal income tax. I am not a tax wizard , but been doing the tax exempt thing for a long time.

 

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Wrong, not sales tax exempt in all states. They are tax deductible. What state do you live in?
I can buy parts at my truck dealer as a repair shop, no tax, but the repair shop has to charge the customer sales tax on the parts.
In Oklahoma you pay tax on core charges and you don’t get it back when you turn in core. Freightliner received so much grief over core tax that they print the law on your recite.

 

Where does the dealer purchase purchase the parts the parts? Sounds like tax

I am in pa. Like i say not a tax wizard, but my method has worked for 40+ years, but mayby not in Oklahoma. Core charges traded in and worth of it is deducted off billing statement. Simple.

 

PA is a tax exempt state for for trucks and parts. Same as Ohio, Indiana, Illinois, Missouri and several others. Your mc number exempts you from sales tax, not your tax i d number.

 

So one can legally be exempt from sales tax in states like Ohio and others you’ve mentioned without getting in trouble? Does this mean the IRS will still somehow tax me for these tax exempt items on my yearly tax return?