cjensen

cjensen

Well Known Member
I haven't called my tax guy yet, but I'm wondering if I can "legally" pay the tax due on my fuselage kit before the remaining 75% is paid. Reason I ask is, my balance won't be paid until the middle of January (best guess), and I'd like to write it off 2006 if I can. I guess I could always call Van's and have them take it the last week of December if nothing else...
 
Illinois has a Use Tax at the same rate as Sales Tax at 6.25%, and I'm paying as I go (like a good boy should...)
 
not deductable

Hey Chad,
I don't think this sales tax is deductable :confused: It's just a added cost of doing RV Business in IL. :mad: More money for the crooks to pee away. Ryan is going to jail and Gov. B. is mostly likey next, so tell me it aint so :)
 
Does the use tax kick in before the airplane is registered?

Here in the socially progressive state of Georgia, we have an ad valorem tax. But I don't think I'll have to pay it until the airplane flies.
 
Hmm...I'll have to call the guy that you and I use. From what I've read, I gathered that is was deductable... :confused:
 
tvlawyer said:
Does the use tax kick in before the airplane is registered?

Here in the socially progressive state of Georgia, we have an ad valorem tax. But I don't think I'll have to pay it until the airplane flies.
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Yep. Use tax is due on purchases over $600 at the end of the next month following the purchase. Less than $600, and you have a year to pay it. Seems bassackwards, but whatever.
 
when it's due

chad I think if you read the form, it's says, up to $600.00 due can be paid with your April 15 return. Over that is due ........maybe 60 days (not sure) from purchase. that's the way I paid the IL. blood money. :mad:
 
Taxes

Chad, just asked that question to some experts at Copperstate. They suggested we do, to show the Revenue Department that we are working with them in advance, and not trying to get away with not paying. That was advice for me and another builder here in Arizona at least. Hope that helps.
 
JACKR said:
chad I think if you read the form, it's says, up to $600.00 due can be paid with your April 15 return. Over that is due ........maybe 60 days (not sure) from purchase. that's the way I paid the IL. blood money. :mad:
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Well, I just read the instructions on both the RUT-25 and the RUT-75 forms (online), and they've taken the $600 amount out completely, and both forms now say the tax is due within 30 days after the item is brought in to IL. :rolleyes:
 
gbrasch said:
Chad, just asked that question to some experts at Copperstate. They suggested we do, to show the Revenue Department that we are working with them in advance, and not trying to get away with not paying. That was advice for me and another builder here in Arizona at least. Hope that helps.
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Yeah, I cooperate. I don't like it, but I cooperate. :mad:
 
Not sure

Chad,

The way I read it, you pay them when you purchase the item. Which to me means when you pay them the money, it becomes yours. 30 days from then. I don't think it is tax deductable, and believe me, I tried every angle. And I am a business owner and farmer, No dice. If you are able to write it off, let me know. (though I think it is too late for me)

I will say, make sure you pay it, I got a penalty for delaying, and it was pretty minimal, fellow with a Glastar paid like 700 in penalties plus the tax. Cause he waited until it was flying, once it was registered, they came looking for him. That provoked me to pay it when I did.

Well, I am off to the hospital...
 
Yeah, I've paid and am current with what I have. I'm not messin' around with penalties.

I'm checking in to the write off...

Congrats Ben!! See ya on the daddio side! :cool: :cool: :cool: :cool:
 
Are you pretty much guaranteed a fight in proving that you already paid your dues when you go to register the finished craft? I just don't see the BASt#&*@ that bust people when they register actually take the time to make SURE the taxpayer owes.


You get to duduct the use taxes paid to your state on your federal return but thats just the taxes (figure about $400 for the fuse X 25% = $100 savings to the fed) Take whatever you can get but this year or next it doesn't really matter for $100.
 
Check with your accountant (if you have one)

What's up boys --

I saw this thread, and it got me thinking about the whole "deduction" thing. I am no accountant, but I seem to recall discussing something similar to this with our accountant last year. I could be wrong, but I believe if you file the long form, and your total sales tax (not sure if use tax counts as sales tax or not) exceeds the standard deduction, you can take the higher amount. You can't take both -- it is definitely a 1 or the other kind of thing. This is why your accountant should ask if you purchased any large items (vehicles, boats, etc.) throughout the year. This should be to see if you are exceeding the standard deduction. Why do you think some people keep all of their receipts for EVERY purchase??? They are trying to see if they spend more than the standard deduction allows.

Like I said, I am not an accountant (Jack, Chad, and Ben all know that!), but I highly recommend working with one for your taxes.
 
Good piece of advice Rob! I'm sorta lucky...my mom is an accountant! :D We sit down each Februrary, and sort through the sales tax stuff. This will be the first time Use Tax will be considered, so she is checking on that for me.
 
I'd register the plane as soon as I bought the first subkit (you can register even if it's not built or flying). This will trigger the sales tax contact from the state - then just pay for what you've bought. After that, pay any additional taxes at your leisure. The state will have no idea what you've bought and when, and since the registration is what kicks them into action, they won't contact you after the initial tax is paid.
 
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