{"id":1350,"date":"2014-07-15T12:53:15","date_gmt":"2014-07-15T16:53:15","guid":{"rendered":"http:\/\/keysolutions.us\/blog\/?p=1350"},"modified":"2014-07-15T12:53:15","modified_gmt":"2014-07-15T16:53:15","slug":"sales-tax-nexus","status":"publish","type":"post","link":"https:\/\/keysolutions.us\/blog\/sales-tax-nexus\/","title":{"rendered":"SALES TAX NEXUS"},"content":{"rendered":"

Working with an experience tax professional for tax preparation<\/a>\u00a0and tax planning<\/a>\u00a0services allows business owners to better manage their tax liabilities. For small business owners, taxes are usually their largest expense. Understanding how states tax businesses is important as it allows the business owner to minimize his or her tax liabilities and to avoid unexpected and unpleasant audit adjustments.<\/p>\n

Peisner Johnson & Company of Plano, TX, a firm devoted to state and local taxes, shared with us its 10 Most Common Nexus-Creating Activities for Sales & Use Tax. Nexus is the tax terminology for the amount of contact a taxpayer has in a state that makes the taxpayer subject to the tax in that state. Peisner\u2019s top ten activities for creating sales tax nexus are:<\/p>\n

1.\u00a0\u00a0\u00a0\u00a0 Ownership of real property (stores, warehouses, offices, etc.)<\/p>\n

2.\u00a0\u00a0\u00a0\u00a0 Ownership of personal property (machinery, equipment, furniture, etc.)<\/p>\n

3.\u00a0\u00a0\u00a0\u00a0 Leasing of real property<\/p>\n

4.\u00a0\u00a0\u00a0\u00a0 Leasing of personal property<\/p>\n

5.\u00a0\u00a0\u00a0\u00a0 Maintaining inventory, whether consigned, stored or carried by sales representatives<\/p>\n

6.\u00a0\u00a0\u00a0\u00a0 Travel of employees into a sate to conduct sales, training, deliveries, installations, repairs, etc.<\/p>\n

7.\u00a0\u00a0\u00a0\u00a0 Delivery of property into a state using seller-owned vehicles<\/p>\n

8.\u00a0\u00a0\u00a0\u00a0 Use of independent sales or manufacturer\u2019s reps, even if they do not work for you exclusively<\/p>\n

9.\u00a0\u00a0\u00a0\u00a0 Use of sub-contractors for repairs, maintenance, installations, etc.<\/p>\n

10.\u00a0\u00a0 Allowing employees to telecommute or use a home office<\/p>\n

While the first seven items would be of no surprise to most business owners, using independent contractors and the inclusion of the telecommuting or home office employee<\/em> show how states have adapted to the new working environment facing employers. As more employers are allowing employees to work at home, employers may unknowingly be creating tax problems for themselves when the employees live in a state other than that where the employer is located.<\/p>\n

If you want to learn if your company\u2019s activities in a state has created nexus for sales, income, franchise or other taxes, we invite you to call 610-594-2601<\/a> today to make an appointment at our Exton PA CPA office<\/a>\u00a0to discuss your situation. You can also schedule a consultation at Click Here<\/a>.<\/p>\n

Copyright \u00a9 2014 Keystone Financial Solutions, P.C. All rights reserved. BE SURE TO READ THE DISCLAIMER PAGE: Content in this blog is for educational purposes only and should not be considered as the rendering of tax, legal or investment advice. The publisher of this blog makes no representations as to the accuracy or completeness of any information herein, will not be liable for any errors or omissions, and shall not assume liability for any losses, injuries, or damages from the display or use of this information.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Working with an experience tax professional for tax preparation\u00a0and tax planning\u00a0services allows business owners to better manage their tax liabilities. For small business owners, taxes are usually their largest expense. Understanding how states tax businesses is important as it allows the business owner to minimize his or her tax liabilities and to avoid unexpected and […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[56],"tags":[],"class_list":{"0":"post-1350","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-state-tax-news","7":"entry"},"aioseo_notices":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9W9tf-lM","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts\/1350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/comments?post=1350"}],"version-history":[{"count":6,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts\/1350\/revisions"}],"predecessor-version":[{"id":1367,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts\/1350\/revisions\/1367"}],"wp:attachment":[{"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/media?parent=1350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/categories?post=1350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/tags?post=1350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}