How to pay the Use Tax in S Corporation?
Posted on May 16, 2009 by admin
cheetahalways17 asked:
When I buy items on the internet for my business, I often do not pay the sales tax. What is the correct way to handle the use tax? Do I increase the purchase price by the state’s sale tax, deduct it, and then pay it to the state on my personal return? In this case the actual receipt will not reflect it.
When I buy items on the internet for my business, I often do not pay the sales tax. What is the correct way to handle the use tax? Do I increase the purchase price by the state’s sale tax, deduct it, and then pay it to the state on my personal return? In this case the actual receipt will not reflect it.
I have an S corporation (pass through entity).
Thank you.
Generally, this is reported on the sales tax return for the S-Corp.