New York Sales Tax

Archive Public Archive
#1

Originally Posted By: fduemig
This post was automatically imported from our archived forum.


I was not planning on charging my customers sales tax. A real estate agent that I am working with told me that would be foolish, saying, “all the inspectors charge sales tax”. How do you NY inspectors handle sales tax?


Thanks,


Fred Duemig

–
Fred Duemig

#2

Originally Posted By: dfrend
This post was automatically imported from our archived forum.


Why would it be foolish? I am not following you. Does NY require it? Here, no sales tax on services.

–
Daniel R Frend


www.nachifoundation.org


The Home Inspector Store


www.homeinspectorstore.com

#3

Originally Posted By: fduemig
This post was automatically imported from our archived forum.


I was planning on paying the sales tax out of my fees and not “charging” extra for it. I was told by this agent that all HI charge the tax above thier fee. I am asking how other NY HI’s handle it.

–
Fred Duemig

#4

Originally Posted By: dfrend
This post was automatically imported from our archived forum.


Do you have to pay sales taxes? If so, then yes, you should charge that above your fee. Document it! Most likely to do so, you need to contact the state and get a sales tax certificate of some sort. But the question is, are you required to pay it?

–
Daniel R Frend


www.nachifoundation.org


The Home Inspector Store


www.homeinspectorstore.com

#5

Originally Posted By: kmcmahon
This post was automatically imported from our archived forum.


Most states do not have sales tax on services (eg. labor).

–
Wisconsin Home Inspection, ABC Home Inspection LLC


Search the directory for a Wisconsin Home Inspector
#6

Originally Posted By: dbush
This post was automatically imported from our archived forum.


Gentlemen, that is what he is trying to find out from the other NY inspectors that do inspections in the state of New York is how they handle Sales Tax and whether it is indeed a requirement.

–
Dave Bush


MAB Member


"LIFE'S TOUGH, WEAR A HELMET"
#7

Originally Posted By: dfrend
This post was automatically imported from our archived forum.


Quote:
I was planning on paying the sales tax out of my fees and not "charging" extra for it.


If you have to pay it, charge for it.

--
Daniel R Frend
www.nachifoundation.org
The Home Inspector Store
www.homeinspectorstore.com
#8

Originally Posted By: dfrend
This post was automatically imported from our archived forum.


Some more info:


See page 18:http://www.tax.state.ny.us/pdf/publications/multi/pub20_703.pdf

and page 14:
http://www.tax.state.ny.us/pdf/publications/Sales/Pub750_302.pdf

I do not see anything saying you need to charge sales tax for a home inspection. I'd consult your attorney or accountant though.

--
Daniel R Frend
www.nachifoundation.org
The Home Inspector Store
www.homeinspectorstore.com

#9

Originally Posted By: Guest
This post was automatically imported from our archived forum.


NYS does indeed charge sales tax on labor except on capital improvements to homes. ie, an addition is sales taxable, a re-roof is.


The HI category falls in the "consultant" range though, and as such isn't a sales taxable service.

#10

Originally Posted By: aslimack
This post was automatically imported from our archived forum.


Every one i talked to from the state tax offices explained it to me like this. If there is a third party involved, (realtor,ect.)you don’t charge tax. The question in my mind would be regarding the lawyers, in which case there is always a “third party” involved. Anyway, right or wrong, my interpretatation is if there is a realtor involved or its a lawyers recommendation /referral, i don’t charge tax. If its a for sale by owner w/o realtors, i have to. Best bet is call the state sales people and see if you get a better explanation. If you do, by all means share, because the people i talked to weren’t much help on the specifics. (I know the sales tax checks keep coming back cashed)

#11

Originally Posted By: fduemig
This post was automatically imported from our archived forum.


Thank you for all the replies. I contacted the NYS Tax Bureau and thier explanation is:


If you are performing the inspection for the owner (seller), it IS taxable at the normal local rate. If you are performing the inspection for the buyer it is NOT taxable.


Fred

–
Fred Duemig

#12

Originally Posted By: aslimack
This post was automatically imported from our archived forum.


Fred, If you have the name and number of who you talked to, i 'd be interested. What do you suppose the chance is of me getting any of my money back? uh , yeah right.

#13

Originally Posted By: fduemig
This post was automatically imported from our archived forum.


I didn’t get the persons name, but after you work through the menu for about 3 hours, icon_smile.gif, you get a real person that will answer the question.


Fred

–
Fred Duemig

#14

Originally Posted By: jfarsetta
This post was automatically imported from our archived forum.


As far as we’ve been yold, a buyer’s inspection is non-taxable.


Dan Osborne did a lot of research on this. He's a NACHI member in Albany.

Contact him, he's got the scoop.

--
Joe Farsetta

Illigitimi Non Carborundum
"Dont let the bastards grind you down..."

#15

Originally Posted By: aslimack
This post was automatically imported from our archived forum.


Thanks Fred, and others, Just called the # and was given your explanation. Now at least i know. I asked the women who took my call about what i had been told prior , and she said i didn’t do any thing illegal and its better to collect when in dought. Sounds like a well trained representative for the state of New York. She said i could have the money back AFTER showing proof i repaid those taxed, or just forget about it. I think i’ll chose B and consider it lesson learned.

#16

Originally Posted By: dosborn
This post was automatically imported from our archived forum.


I was concerned about weather I should pay the sales tax or not, so I did some investigating… A friend of mine works in the NY State Tax department. He found that there is no current policy on weather “Home Inspectors” should collect sales tax or not… but he did the appropriate case study and the consensus is… If you are doing a home inspection for a real estate transaction then you do not need to collect the sales tax… If you are doing the home inspection for the owner for purposes other than a real estate transaction then you should collect the sales tax.


I believe he used the model from appraisers to come to this decision.... He gave me supporting documentation for his study.... needless to say he is a big wig in the tax department..... and here is hoping he is correct.

Dan Osborn
Upstate Home Inspection Service
Clifton Park, NY