Exchange Facilitator Does Not Beat Missouri Use Tax On Learjet
So even though, the companies may have gotten the income tax deferral that 1031 is designed to yield the benefit did not extend to use tax. Presumably, it would have worked if Learjet had taken the 2004 model in trade for the 2007 model, but there are probably business reasons why that was not an option.
The important lesson here is that concepts that work in federal income taxation do not alway translate well when applied in the SALT (State and local tax) area .
Why Is Multi-State Tax Compliance So Hard?
Now I know some real sharp SALT consultants with boutique practices like Inez and Sylvia Dion, whom I featured in women in accounting series, but there are only so many favors you want to ask, so I have developed my own easy rule of thumb. If you ask if you should be filing in a particular state, the answer is probably yes.
And here’s the killer. Most preparers don’t have that much trouble working another state income tax return in, but when it comes to your sales and use tax requirements. Forget about it. You are lucky if they have a clue about their home state.
I had somebody ask me the question last week out of the blue. I’m going to make up a fact pattern that illustrates their problem but is entirely fabricated. As far as I know there is no business like the imaginary one I am about to describe.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.