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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Do contractors charge tax
Just curious.
Got an estimate recently and it included tax. I dont recall paying tax on jobs we had done in the past but maybe it was included n the overall price?
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Posted 8/13/13 6:11 AM  |
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Kitten1929
LIF Adult
Member since 1/13 6040 total posts
Name:
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Do contractors charge tax
Sure, they're performing a service and services are taxable. If you mention paying cash they may waive the tax, but recently the estimates we received for paving work all included tax despite paying cash.
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| Posted 8/13/13 7:18 AM |
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SecretTTCer
LIF Adult
Member since 6/08 2284 total posts
Name:
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Re: Do contractors charge tax
Depends. Most home improvements are exempt from tax. What specific project are you considering?
Message edited 8/13/2013 7:21:53 AM.
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| Posted 8/13/13 7:20 AM |
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LemonHead
Sour Girl
Member since 3/08 5271 total posts
Name:
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Do contractors charge tax
If the contractor is reporting his income accurately to his accountant, he is being taxed on the income he brings home from your job. If he didn't charge you tax on the services rendered, a significant portion of the profit would be eaten up in taxes.
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| Posted 8/13/13 8:11 AM |
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JustBrowsing
LIF Infant
Member since 3/13 68 total posts
Name:
OnlyTheShadowKnows
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Do contractors charge tax
There should be no tax if there is a capital improvement in your home - windows, something permanent that would cause damage if it was removed.
http://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/capital_improvements.htmoved.
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| Posted 8/13/13 9:13 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Do contractors charge tax
Posted by LemonHead
If the contractor is reporting his income accurately to his accountant, he is being taxed on the income he brings home from your job. If he didn't charge you tax on the services rendered, a significant portion of the profit would be eaten up in taxes.
Sales tax and income tax are two totally different things.
Everyone is supposed to report whatever PROFIT they make and this goes against their INCOME taxes. They aren't reporting what the cost of the job is, they are reporting what the cost of the job is vs. their expenses. That really has nothing to do with you.
Contractors will charge SALES tax on certain jobs that Albany requires they collect on. Certain home improvement projects are not subject to sales tax, mainly any capital improvements or things that attach directly to the house itself. Any services offered like plumbing, electrical, or other non capital improvement jobs like landscaping are subject to sales tax. The contractor is supposed to collect these and send that money to Albany as part of their quarterly (or Yearly) NY sales tax reporting.
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| Posted 8/13/13 9:26 AM |
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LemonHead
Sour Girl
Member since 3/08 5271 total posts
Name:
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Re: Do contractors charge tax
Posted by ave1024
Posted by LemonHead
If the contractor is reporting his income accurately to his accountant, he is being taxed on the income he brings home from your job. If he didn't charge you tax on the services rendered, a significant portion of the profit would be eaten up in taxes.
Sales tax and income tax are two totally different things.
Everyone is supposed to report whatever PROFIT they make and this goes against their INCOME taxes. They aren't reporting what the cost of the job is, they are reporting what the cost of the job is vs. their expenses. That really has nothing to do with you.
Contractors will charge SALES tax on certain jobs that Albany requires they collect on. Certain home improvement projects are not subject to sales tax, mainly any capital improvements or things that attach directly to the house itself. Any services offered like plumbing, electrical, or other non capital improvement jobs like landscaping are subject to sales tax. The contractor is supposed to collect these and send that money to Albany as part of their quarterly (or Yearly) NY sales tax reporting.
I understand this, I was attempting to explain (quickly) why a contractor may charge tax on something that does not necessarily require it. Even though they are not related, some do this to offset what they themselves have to pay the govt. I'm not condoning it, but it does happen.
Message edited 8/13/2013 10:54:00 AM.
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| Posted 8/13/13 10:52 AM |
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lucky1007
My Princess is Here!
Member since 11/11 1131 total posts
Name:
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Re: Do contractors charge tax
yes unless you pay cash usually
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| Posted 8/13/13 1:15 PM |
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