Tax exempt for auctions?

rrman61

Well-known Member
How is a person tax exempt when buying at auction?would I Need to own a business or be incorporated?
 
Depends on which state and which taxes. Farm sales tax exempt in ny is fairly easy. Fill out a short form attesting that the purchases are for agricultural purposes and sign.
 
Its different for different states, but in Indiana when I was in business I had to file for an exemption (for business purchases) I had an RRMC number something like that, and at each place of business they had to have my info on file TO AVOID ME PAYING AND THEM COLLECTING SALES TAX.........Back when I was farming the ag sales tax exemption was MUCH easier I simply filled out a form at ag/farm/feed dealers no questions asked but I bet its harder today. Hopefully someone who has sales tax exemption experience for YOUR STATE will reply or else they will be kind enough to take the time to research it and give you the answer.

Best wishes, until someone researches it for you, better be safe than sorry lol the penalties can be huge!

John T NOT any sales tax expert you need someone who is ! but don't bet the farm on anything posted here
 
No problem, hopefully some kind gent familiar with or will research your state and let you know ??

Sorry

Best wishes now and good luck

John T
 
All states are different about their taxes but in Ohio there is no tax charged for a one time auction. If there is a second auction on the same location then the auctioneer is required to charge sales tax. A two day auction is considered a one time for tax purposes. I still have my license but am giving them up this year, just getting too short of breath these days.
 
Also, in cases where the buyer is a dealer, or broker and the purchase at auction is for re-sale to a end consumer. The broker will have a tax-exempt resale license by the state.
 
In Ohio a farm auction is very different than buying form a store bussiness and sometimes from a household auction there will be tax but most of the time no.
 

To need to narrow it down to what are you going to do with it after you buy it.

A many a persons life has been ruined over sales tax issues. The state will have no problem taking everything you have including the non working clock on your wall. The state will leave nothing for the IRS to collect.
 

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