Sales tax on Scarlet purchase?

[Omar N]

If you are worried about sales tax, have you thought thru what else you need to make this work?
Media
Lenses
support

It is a good point, but in my case, all of that will be coming from elsewhere.

 

[Paramon Ivanovich]

GST is only 5%, here in Alberta we have no provincial sales tax.

nice

 

[Stacey Spears]

Does that mean I don't need to report it locally?

Nope. It will show up on your invoice and you will pay at that time.

Also do you know if Washington has Sales Tax excemptions for business purchases?

I don't know. We are in a unique situation since we don't have a state income tax.

 

[Brian Iannone]

GST is only 5%, here in Alberta we have no provincial sales tax.

Very nice.

 

[Omar N]

Thank you for the help Gavin. I have a meeting scheduled with my local accountant for Wednesday, so I will be sure to ask him if we have anything here in IL similar.

 

[D Fuller]

Isn't there some sort of sales tax reduction that applies to equipment used in a business if you file the proper papers?

I'm sure the answer to that depends on what state you are in. In Maine, there is an exemption for equipment used in the production of products for re-sale.

 

[Gavin Greenwalt]

I don't know. We are in a unique situation since we don't have a state income tax.

We do have a B&O tax though which is essentially an income tax. I just did a little reading and it sounds like there are no excemptions for equipment purchases in Washington, only production rentals.

The big Tax break that I think will help people is Section 179 in the Stimulus bill. It lets you write off 100% of the depreciation up front where qualifying. Which if you pay 20% income tax could save you a good chunk of change for the year (assuming you take delivery and use it before December 31st). For me this year it would almost make sense to spend the extra on a PL lens mount now instead of later if it means getting it before the end of the year. I don't know though. I'm int he same boat as you Omar I just need to sit down with an accountant this week anyway.

 

[Craig Weeding]

Hi Scott

Are you refering to California " Regulation 1532. TELEPRODUCTION OR OTHER POSTPRODUCTION SERVICE EQUIPMENT."?
http://www.film.ca.gov/res/docs/Teleproduction%20Sales%20Tax%20Exemption%20%20-%20info%20sheet%20(2).pdf

I understand this is only for post production and not for production. I do not see how a camera would fit under this part of the tax code. Is there another tax exemption you know of?
I could not find California Tax code 6732 that you mentioned.

Thanks Craig

From California State Rev & Tax Code Section 6378, Regulation 1532

(4) “Teleproduction or other postproduction services” means services for film, video, or digital
multimedia formats (audio or visual) that include editing, film and video transfers, transcoding, dubbing,
subtitling, credits, close captioning, audio production, special effects (visual or sound), graphics, or
animation. For the purposes of this regulation, “teleproduction or other postproduction services” includes
postproduction services and does not include production services or activities.

 

[Stacey Spears]

The big Tax break that I think will help people is Section 179 in the Stimulus bill.

Its $500k for 2011. I was supposed to drop to $25k in 2012, but it looks like it only drops to $125k. To qualify, for 2011, the equipment must be put into use before the end of the year.

 

[Gavin Greenwalt]

Its $500k for 2011. I was supposed to drop to $25k in 2012, but it looks like it only drops to $125k. To qualify, for 2011, the equipment must be put into use before the end of the year.

It's $500k (2011)/ $125k (2012k) maximum, not minimum though right? So my understanding is that so long as Omar doesn't spend over $125k next year in gear he's still eligible right? If he spends $15k on a Scarlet for a production or rental business then I would imagine the tax savings from S 179 would wipe out any state sales tax he didn't anticipate paying.

There are down-sides and up-sides to running a business in a depression.

 

[Stacey Spears]

Yes, they are maximum.

 

[Gabriel Brault Tardif]

Anyone knows about International Orders? I'm seriously considering buying a Scarlett, I'm living in Canada.
What about tax? I think I will need to pay TPS and Duties?