This may be a dumb question but one that will sway my decisions about buying new or used equipment. Im not a contractor but will own the CTL im looking into buying under a business entity for personal and business use. If buying used (private sale) do the same sales tax laws apply as say buying new from a dealer? My inuition would say government is getting their cut in some way. Im in Wi if it matters.
If you buy from a dealer it'll be taxed somehow, they want your money. Sales tax if nothing else. From a private party no. Joe H
That may depend on location. Here in Idaho. Buying used or new from a dealer of course would be subject to sales tax. However, buying from a person, would still be subject to sales tax or as they like to call it also is use tax. As a business, here anyway, they audit you. If you didn't pay use or sales tax on those items you should have, you have to pay what is owed and of course a fine. I know of at least one nonbusiness entity that was audited for this as well. I would say it is best to talk to your CPA or someone from the State of Wi. to understand how they handle that.
In Canada with the GST it can go either way buying from a private seller. If it's coming from a contractor or business the GST is usually added to the price. From a hobby user there won't be GST. I think some private sellers try to add the GST for extra money though. Whenever you're charged GST there is supposed to be the GST number of the seller on the receipt.
Here in Oklahoma, private seller to private buyer, no tax. You can also buy from a business or dealer if that seller is in another state AND it is delivered by them or a 3rd party, they don't charge sales tax in that state. If you drive to pick it up in person, you pay that state's sales tax. I have to report personal property tax in my county, which includes equipment. This tax is generally much less than sales tax.
In Canada if you live in BC and buy a vehicle in Alberta you have to pay the BC sales tax to be able to take the vehicle back to BC. My sister had to when she bought a vehicle in Calgary and she lives on Vancouver Island.