Anonymous
Anonymous asked in Business & FinanceOther - Business & Finance · 2 months ago

I have tax-exempt for Costco due to business, if I need to purchase an electronic like IPad or Computer from Costco, will it be exempted?

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  • 2 months ago

    The reseller's exemption is only for items you plan to resell through your business where you will collect sales tax from the person who buys it from you.

    Any item use use within your business or for personal use is subject to sales tax.

    so if you're buying the iPad from Costco to resell it to a customer through  your business, and you collect sales tax at the time of that final sale, then you may use  your reseller's exemption to avoid sales tax when buying at Costco.

    If you are using the ipad for the business and/or personal use, with no intent to sell it, then you must pay sales tax when you purchase it from Costco.

    If you are shopping at Costco and purchasing some items for resell and some for use, then you should separate the items and make multiple transactions when you're checking out.

    Abusing the resellers exemption by purchasing items to use for personal use would be tax fraud and could be a felony depending on state laws and the amount of money involved. In other words, don't cheat, if you're going to use the iPad yourself then just pay the tax.

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  • 2 months ago

    I assume that your business has a "Resale Exemption".

    Only items that you intend to resell can be purchased exempt from sales tax.

    If you are buying the Ipad to use in your business or as personal use item, you pay sales tax just like everyone else.

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  • 2 months ago

    Why are YOU tax-exempt? Is it for resale? Then yes, it's tax exempt. However, if you use it yourself even if it's for your business, you should pay taxes on it. On the bright side, I'm not a CPA.

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  • 2 months ago

    Depends on whether or not you’re allowed to buy those things for your business. If you have a tax exempt business you still have to follow federal regulation on what you can buy that can be tax exempt. 

    You need to show a form that says you’re tax exempt but even then, Costco might not honor it. 

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  • Anonymous
    2 months ago

    Hey, I know, as 46 more times.

    If you are tax exempt for resale it will be exempted. It could be tax fraud if you do not really sell them. but nobody would care.

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