might be a silly ?

aedavisaedavis Posts: 7subscriber
edited September 2007 in Startup Funding
Ok I have a silly question, If I have a Tax ID can I use that to purchase me a Automobile and use it as a tax right off  for me and my business please someone help me

Comments

  • MNGrillGuyMNGrillGuy Posts: 2subscriber
    Yes, if it is used for business.  MNGrillGuy2007-9-17 10:26:41
  • miabellacandlesmiabellacandles Posts: 3subscriber
    A tax ID allows you to purchase something for resale tax-free. Unless you are reselling the car, you can`t purchase it without sales tax. However, you can write off the purchase of the car and other expenses such as repairs and mileage if used for business purposes. You might wish to consult an accountant for more detailed information.
  • Fred333Fred333 Posts: 0subscriber
    Never knew that about the Tax ID. I always get confused when it comes to the nooks and crannies of taxes.
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member

    A tax ID allows you to purchase something for resale tax-free. Unless you are reselling the car, you can`t purchase it without sales tax. However, you can write off the purchase of the car and other expenses such as repairs and mileage if used for business purposes. You might wish to consult an accountant for more detailed information.

    The federal tax id number (aka EIN) has nothing to do with sales tax. Sales tax is a state and local tax. To purchase goods (for resale) without paying sales tax, you will need an exemption from your state - typically called a "resale tax permit / license" depending upon the state.
    Neither has anything to do with whether the company can purchase equipment (an automobile) and be able to deduct said expense from the company income.
Sign In or Register to comment.