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Part 2
I haven’t even started on Use Tax. Out of state consumer purchases or if you own a grocery store and use some of the cleaning products you sell to clean your store, use tax is due.
Then in New York, the super rich brag of diamond gifts for their “girlfriends,” the “girlfriends” get hit with the federal GIFT TAX. (gifts over $10,000).
The other states WILL NOT COMPENSATE YOU for time and effort to collect & report taxes. Do you get compensation to file your income taxes? NO!!
Digital is an intangible. Same as a fishing guide you hired for his services. He has to collect a sales tax for his services, if required. Each state is case by case.
Sales taxes are only collected at the retail level. Except Hawaii.
GoDaddy may have to tax you, unless as some states, exempt items used in the creation or resale of an item. If you have a domain for specifically selling online downloads (i.e. digital porn), that would be exempt in most states. Such as buying a welder to make go-carts.
But say for General Motors buys a domain just to show off their cars. GoDaddy would have to collect the tax, as the site is to advertise the product not specifically to deliver the product.
Believe me there are very rich accountants and lawyers who do nothing but this and many state employees who get state paid vacations to cool places so they can audit companies sales tax collections.
You guys may know how to make a buck in the porn biz, but like 99% of all businessmen clueless when it comes to taxes in general and sales taxes specifically.
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