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    Tax question / free hardware

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    • brianlittlejohnB
      brianlittlejohn @Dashrender
      last edited by

      @Dashrender said in Tax question / free hardware:

      Why have them donate it. Have them sell the equipment for $1 each. It's not like a house or car where you have to pay property taxes.

      Paying the $1 and the tax bill on $1 will probably be substantially less than paying a tax accountant.

      though I suppose you could investigate paying $1 for the whole lot.

      That doesn't necessarily get you past use taxes on their value.

      DashrenderD 1 Reply Last reply Reply Quote 1
      • DashrenderD
        Dashrender @brianlittlejohn
        last edited by

        @brianlittlejohn said in Tax question / free hardware:

        @Dashrender said in Tax question / free hardware:

        Why have them donate it. Have them sell the equipment for $1 each. It's not like a house or car where you have to pay property taxes.

        Paying the $1 and the tax bill on $1 will probably be substantially less than paying a tax accountant.

        though I suppose you could investigate paying $1 for the whole lot.

        That doesn't necessarily get you past use taxes on their value.

        Is there some new thing I'm unaware of? Aren't typical purchased goods (I'm specifically excluding houses/buildings and vehicles) taxes within the US at the sales rate, regardless of value? I suppose there could be an actual value limitation on this, but I've never heard of it. Is there one?

        scottalanmillerS 2 Replies Last reply Reply Quote 1
        • scottalanmillerS
          scottalanmiller @Dashrender
          last edited by

          @Dashrender said in Tax question / free hardware:

          @brianlittlejohn said in Tax question / free hardware:

          @Dashrender said in Tax question / free hardware:

          Why have them donate it. Have them sell the equipment for $1 each. It's not like a house or car where you have to pay property taxes.

          Paying the $1 and the tax bill on $1 will probably be substantially less than paying a tax accountant.

          though I suppose you could investigate paying $1 for the whole lot.

          That doesn't necessarily get you past use taxes on their value.

          Is there some new thing I'm unaware of? Aren't typical purchased goods (I'm specifically excluding houses/buildings and vehicles) taxes within the US at the sales rate, regardless of value? I suppose there could be an actual value limitation on this, but I've never heard of it. Is there one?

          These aren't purchased goods, these are gifts.

          DashrenderD 1 Reply Last reply Reply Quote 1
          • scottalanmillerS
            scottalanmiller @Dashrender
            last edited by

            @Dashrender said in Tax question / free hardware:

            @brianlittlejohn said in Tax question / free hardware:

            @Dashrender said in Tax question / free hardware:

            Why have them donate it. Have them sell the equipment for $1 each. It's not like a house or car where you have to pay property taxes.

            Paying the $1 and the tax bill on $1 will probably be substantially less than paying a tax accountant.

            though I suppose you could investigate paying $1 for the whole lot.

            That doesn't necessarily get you past use taxes on their value.

            Is there some new thing I'm unaware of? Aren't typical purchased goods (I'm specifically excluding houses/buildings and vehicles) taxes within the US at the sales rate, regardless of value? I suppose there could be an actual value limitation on this, but I've never heard of it. Is there one?

            You are not familiar with use taxes? That's what you owe when you didn't pay sales tax on something.

            DashrenderD T 2 Replies Last reply Reply Quote 1
            • DashrenderD
              Dashrender @scottalanmiller
              last edited by

              @scottalanmiller said in Tax question / free hardware:

              @Dashrender said in Tax question / free hardware:

              @brianlittlejohn said in Tax question / free hardware:

              @Dashrender said in Tax question / free hardware:

              Why have them donate it. Have them sell the equipment for $1 each. It's not like a house or car where you have to pay property taxes.

              Paying the $1 and the tax bill on $1 will probably be substantially less than paying a tax accountant.

              though I suppose you could investigate paying $1 for the whole lot.

              That doesn't necessarily get you past use taxes on their value.

              Is there some new thing I'm unaware of? Aren't typical purchased goods (I'm specifically excluding houses/buildings and vehicles) taxes within the US at the sales rate, regardless of value? I suppose there could be an actual value limitation on this, but I've never heard of it. Is there one?

              These aren't purchased goods, these are gifts.

              If you look at the quoted items I suggested that the OP not accept a gift, instead to pay for them. Then the value becomes what you paid - unless there is tax code for non home/building/vehicle items at a specific value being sold for less than current value that would then make you have to pay taxes on the current actual value.

              1 Reply Last reply Reply Quote 1
              • DashrenderD
                Dashrender @scottalanmiller
                last edited by

                @scottalanmiller said in Tax question / free hardware:

                @Dashrender said in Tax question / free hardware:

                @brianlittlejohn said in Tax question / free hardware:

                @Dashrender said in Tax question / free hardware:

                Why have them donate it. Have them sell the equipment for $1 each. It's not like a house or car where you have to pay property taxes.

                Paying the $1 and the tax bill on $1 will probably be substantially less than paying a tax accountant.

                though I suppose you could investigate paying $1 for the whole lot.

                That doesn't necessarily get you past use taxes on their value.

                Is there some new thing I'm unaware of? Aren't typical purchased goods (I'm specifically excluding houses/buildings and vehicles) taxes within the US at the sales rate, regardless of value? I suppose there could be an actual value limitation on this, but I've never heard of it. Is there one?

                You are not familiar with use taxes? That's what you owe when you didn't pay sales tax on something.

                See my other post 🙂

                1 Reply Last reply Reply Quote 1
                • T
                  TAHIN @scottalanmiller
                  last edited by

                  @scottalanmiller said in Tax question / free hardware:

                  You are not familiar with use taxes? That's what you owe when you didn't pay sales tax on something.

                  "The use tax imposes a compensating tax equal in amount to the sales tax that would have been imposed on the sale of the property, if the sale had occurred within the state's taxing jurisdiction."

                  I thought use tax was imposed according to the state in which the product is being consumed. There's no sales tax in Montana, and therefore no use tax either. There is a small clause for sales and use tax, but that is limited to campgrounds/tourist stuff (go us lol).

                  DashrenderD T 2 Replies Last reply Reply Quote 0
                  • DashrenderD
                    Dashrender @TAHIN
                    last edited by

                    @TAHIN said in Tax question / free hardware:

                    @scottalanmiller said in Tax question / free hardware:

                    You are not familiar with use taxes? That's what you owe when you didn't pay sales tax on something.

                    "The use tax imposes a compensating tax equal in amount to the sales tax that would have been imposed on the sale of the property, if the sale had occurred within the state's taxing jurisdiction."

                    I thought use tax was imposed according to the state in which the product is being consumed. There's no sales tax in Montana, and therefore no use tax either. There is a small clause for sales and use tax, but that is limited to campgrounds/tourist stuff (go us lol).

                    Well, if you have no sales or use tax, then you probably don't have anything at all to worry about. What other kind of tax would you be subject to for accepting goods? Computers/servers/printers, and other typical IT related things aren't subject to property tax. I can't think of anything else you'd have to worry about.

                    I suppose someone could try to claim capital gains taxes? meh?

                    scottalanmillerS J 2 Replies Last reply Reply Quote 1
                    • T
                      TAHIN @TAHIN
                      last edited by

                      Which is also why I had to google "use tax".

                      Ignorance sure is bliss!

                      1 Reply Last reply Reply Quote 1
                      • scottalanmillerS
                        scottalanmiller @Dashrender
                        last edited by

                        @Dashrender said in Tax question / free hardware:

                        @TAHIN said in Tax question / free hardware:

                        @scottalanmiller said in Tax question / free hardware:

                        You are not familiar with use taxes? That's what you owe when you didn't pay sales tax on something.

                        "The use tax imposes a compensating tax equal in amount to the sales tax that would have been imposed on the sale of the property, if the sale had occurred within the state's taxing jurisdiction."

                        I thought use tax was imposed according to the state in which the product is being consumed. There's no sales tax in Montana, and therefore no use tax either. There is a small clause for sales and use tax, but that is limited to campgrounds/tourist stuff (go us lol).

                        Well, if you have no sales or use tax, then you probably don't have anything at all to worry about. What other kind of tax would you be subject to for accepting goods? Computers/servers/printers, and other typical IT related things aren't subject to property tax. I can't think of anything else you'd have to worry about.

                        I suppose someone could try to claim capital gains taxes? meh?

                        Any states not have those?

                        DashrenderD 1 Reply Last reply Reply Quote 0
                        • DashrenderD
                          Dashrender @scottalanmiller
                          last edited by

                          @scottalanmiller said in Tax question / free hardware:

                          @Dashrender said in Tax question / free hardware:

                          @TAHIN said in Tax question / free hardware:

                          @scottalanmiller said in Tax question / free hardware:

                          You are not familiar with use taxes? That's what you owe when you didn't pay sales tax on something.

                          "The use tax imposes a compensating tax equal in amount to the sales tax that would have been imposed on the sale of the property, if the sale had occurred within the state's taxing jurisdiction."

                          I thought use tax was imposed according to the state in which the product is being consumed. There's no sales tax in Montana, and therefore no use tax either. There is a small clause for sales and use tax, but that is limited to campgrounds/tourist stuff (go us lol).

                          Well, if you have no sales or use tax, then you probably don't have anything at all to worry about. What other kind of tax would you be subject to for accepting goods? Computers/servers/printers, and other typical IT related things aren't subject to property tax. I can't think of anything else you'd have to worry about.

                          I suppose someone could try to claim capital gains taxes? meh?

                          Any states not have those?

                          Not have what? Capital gains? I have no idea - but I'm not sure that capital gains count on sold goods that aren't the aforementioned home/building/vehicle.

                          1 Reply Last reply Reply Quote 0
                          • J
                            Jason Banned @Dashrender
                            last edited by Jason

                            @Dashrender said in Tax question / free hardware:

                            @TAHIN said in Tax question / free hardware:

                            @scottalanmiller said in Tax question / free hardware:

                            You are not familiar with use taxes? That's what you owe when you didn't pay sales tax on something.

                            "The use tax imposes a compensating tax equal in amount to the sales tax that would have been imposed on the sale of the property, if the sale had occurred within the state's taxing jurisdiction."

                            I thought use tax was imposed according to the state in which the product is being consumed. There's no sales tax in Montana, and therefore no use tax either. There is a small clause for sales and use tax, but that is limited to campgrounds/tourist stuff (go us lol).

                            Well, if you have no sales or use tax, then you probably don't have anything at all to worry about. What other kind of tax would you be subject to for accepting goods? Computers/servers/printers, and other typical IT related things aren't subject to property tax. I can't think of anything else you'd have to worry about.

                            I suppose someone could try to claim capital gains taxes? meh?

                            Actually they are subject to property tax as well as depreciation credits. With business all physical assets are taxable.

                            DashrenderD 2 Replies Last reply Reply Quote 0
                            • DashrenderD
                              Dashrender @Jason
                              last edited by

                              @Jason said in Tax question / free hardware:

                              @Dashrender said in Tax question / free hardware:

                              @TAHIN said in Tax question / free hardware:

                              @scottalanmiller said in Tax question / free hardware:

                              You are not familiar with use taxes? That's what you owe when you didn't pay sales tax on something.

                              "The use tax imposes a compensating tax equal in amount to the sales tax that would have been imposed on the sale of the property, if the sale had occurred within the state's taxing jurisdiction."

                              I thought use tax was imposed according to the state in which the product is being consumed. There's no sales tax in Montana, and therefore no use tax either. There is a small clause for sales and use tax, but that is limited to campgrounds/tourist stuff (go us lol).

                              Well, if you have no sales or use tax, then you probably don't have anything at all to worry about. What other kind of tax would you be subject to for accepting goods? Computers/servers/printers, and other typical IT related things aren't subject to property tax. I can't think of anything else you'd have to worry about.

                              I suppose someone could try to claim capital gains taxes? meh?

                              Actually they are subject to property tax as well as depreciation credits

                              Really? At what level do you have to pay property tax on IT equipment? I had 10K+ of server equipment in my house for years when I had my own business. My tax accountant knew full well about it and never once mentioned anything about property taxes on that equipment.

                              I'm pretty sure we don't pay property tax on car either, we pay sales of course, then Road and whatever other taxes are put on by your local municipality.

                              1 Reply Last reply Reply Quote 0
                              • DashrenderD
                                Dashrender @Jason
                                last edited by

                                @Jason said in Tax question / free hardware:

                                depreciation credits. With business all physical assets are taxable.

                                Now sure, you get depreciation credits, but that's based on what you paid (for goods). I.E. I buy a server for $5K, I get to depreciate that over 5-8 years. But if that server is given to me - what would I be depreciating against? Even better, I pay $100 for it, pretty sure I don't get to take depreciation against $5000, but I could be wrong.

                                scottalanmillerS 1 Reply Last reply Reply Quote 0
                                • J
                                  Jason Banned
                                  last edited by

                                  Depreciation is based on assested value not just purchase price. Donated assets are depreciated just the same

                                  1 Reply Last reply Reply Quote 0
                                  • T
                                    TAHIN
                                    last edited by

                                    What if the asset is treated like a "demo unit" that we will have until it's fully depreciated, at which point the vendor writes it off?

                                    1 Reply Last reply Reply Quote 0
                                    • scottalanmillerS
                                      scottalanmiller @Dashrender
                                      last edited by

                                      @Dashrender said in Tax question / free hardware:

                                      @Jason said in Tax question / free hardware:

                                      depreciation credits. With business all physical assets are taxable.

                                      Now sure, you get depreciation credits, but that's based on what you paid (for goods). I.E. I buy a server for $5K, I get to depreciate that over 5-8 years. But if that server is given to me - what would I be depreciating against? Even better, I pay $100 for it, pretty sure I don't get to take depreciation against $5000, but I could be wrong.

                                      If you pay $100 to try to make something not a gift that was really a gift that's called tax fraud 😉

                                      T 1 Reply Last reply Reply Quote 2
                                      • T
                                        TAHIN @scottalanmiller
                                        last edited by

                                        @scottalanmiller said in Tax question / free hardware:

                                        If you pay $100 to try to make something not a gift that was really a gift that's called tax fraud 😉

                                        You mean... that's just us being "smart"?

                                        haha, sorry, HAD to!

                                        1 Reply Last reply Reply Quote 0
                                        • brianlittlejohnB
                                          brianlittlejohn
                                          last edited by

                                          What it really all boils down to is Tax Law is unmitigated mess, so you need to ask your CPA what you have to do with those.

                                          scottalanmillerS 1 Reply Last reply Reply Quote 1
                                          • scottalanmillerS
                                            scottalanmiller @brianlittlejohn
                                            last edited by

                                            @brianlittlejohn said in Tax question / free hardware:

                                            What it really all boils down to is Tax Law is unmitigated mess, so you need to ask your CPA what you have to do with those.

                                            Even if the tax law was simple, gifts are complex. The idea that you can give someone something without there being an equal exchange of business value doesn't really make sense in a business setting. So the question becomes... why would a business do this?

                                            DashrenderD 1 Reply Last reply Reply Quote 1
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