Well it sounds like the Amazon sales tax deal is a done deal. Amazon (along with other online retailers) won’t have to collect sales tax in California until September 15, 2012. After that they will. The bill is Ab155 and here is a link to an article and the text of the bill:http://www.forbes.com/sites/robertwood/2011/09/12/how-amazons-california-tax-romp-will-impact-us-all/So buy your DVDs and stuff before the September 15, 2012 deadline and you can pay the sales tax yourself to California on your 2012 Income Tax Return, or just wait and pay it to Amazon when you order.
Brian’s Tax Musings
Hey everyone in California! Chances are by September 2012 you will be paying sales tax on your Amazon purchases. Word is Amazon and the state of California have a tentative deal in place. California will give Amazon a moritorium on collecting sales tax for one year in exchange for Amazon agreeing to collect 7.25% tax thereafter. Don’t know too many details but it would seem that Amazon would then rehire their California affiliates and everyone makes money. We will see how it goes – when something definite comes up I will let you know.Here is a link to the compromise: http://www.bizjournals.com/sacramento/blog/morning-roundup/2011/09/amazon-makes-deal-with-california.htmlHere is an article that talks a little about the affiliates: http://watchdog.org/11275/amazon-tax-compromise-would-hit-california-small-biz/
Brian’s Tax Musings
Remember that if you take the IRS mileage rate on an auto in your business, you still have to claim a gain or loss if you sell that car or truck. The IRS mileage rate includes 22 cents a mile depreciation, so use that and your total miles to calculate how much depreciation to reduce your cost and calculate your gain or loss. If you have questions, email me at bstonercpa@sbcglobal.net and we can do a calculation to see whether it makes sense to sell, trade in or give away the car or truck.