Quote:
Originally Posted by chriskim
I already contacted IRS to look into this, they didn't charge sales tax on this transaction. (I am pretty sure the buyer would file such transaction on his own and pay the tax..... yeah right)
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A business would have a resale number and anything bought for inventory is sales tax exempt. (In my state at least, not sure about others. )
Now if it's still in inventory at the end of the year, they'd probably be taxed as profit assuming the inventory increased over the previous year.
My city also charges a tax on business inventory stored in the city.