![]() ![]() Determine if you are required to charge sales taxĪs a business owner in trade craft you will need to evaluate whether you are required to charge sales tax on your labor. Since a majority of them markup the materials, they are still required to charge sales tax in the County in which the project resides. By having their clients fill this form out before the major project begins, my clients do not have to charge sales tax on the labor portion of income. ![]() I have been implementing a system with my clients for them to provide their clients a Form E589CI, which is an affidavit of capital improvement. So you have been hired by your client to perform a capital improvement on their property. **I recommend talking with you accountant or bookkeeper regarding the treatment of sales tax within your business.*** NC sales tax vs capital improvement I have outlined several general rules that you can take into account. ![]() If you are performing work related to a capital improvement on the property then you are not requested to charge sales tax on the labor. However, there is one area in the trade craft where they don’t have to charge sales tax to the customer. This has put an unnecessary burden on these trades as there is now an additional item to track in their accounting system. Trade laborers such as electricians, plumbers, handymen, etc will now have to charge sales tax on the labor they bill to their customers. As of 1/1/17 the state of NC sales tax vs capital improvement has become a little muddier. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |