Sales
True or False:
Manufacturer rebate reduces tax liability and dealer rebate does not.
False
Je-BAAAAMMMM!!!!!!!!!!!!!!!
Better luck next time
All of these items are taxable to dealer:
wrenches and sockets, pliers, impact tools, jumper cables, engine analyzers, alignment equipment, engine filters, welding equipment.
False, engine filters can be purchased for resale.
Je-BAAAMM!!!
You lost everything! Hope you didnt leave the lowest values for the end.
A customer enters into a lease for 36 months at $300/month in an 8% taxing jurisdiction. What tax is due at lease inception?
864 = 36 x $300 x .08
True or False:
A New York State Inspection is taxable
False
What is the mileage limitation for a mixed use vehicle used from January 2023 to May 2023?
None, under 6 months
All of these items can be purchased with resale certificate by the dealer:
Brake fluid, transmission fluid, bearing grease, sheet metal for car repairs, antifreeze, windshield washer fluid, motor oil and paint
This is a good source for list of Fixed Assets acquired during the audit.
Depreciation Schedule
A customer enters into a 3 year lease for a vehicle at $400/month, in an 8.875% taxing jurisdiction. The customer pays the sales tax upfront. The car is in an accident and declared a complete loss two months into the lease. How much refund is the customer entitled to?
$0, there is no refund for sales tax paid on a lease vehicle subsequently destroyed in an accident.
Je-Bam!
This game stinks!!
What will be the use tax due for a mixed-use vehicle, valued at $28,000, used from February 2023 to January 2024 with 13,000 miles driven at the end of the period? 8.5% tax rate.
$285.60, $28,000 x .01 x 12 months x .085
JEEEEE-BAAAAMMMMMM!!!
Its all gone!
Je-BAMMMMM!!
Sorry, not Sorry
A customer enters into a lease for 10 months at $300 per month, what will be the tax due in 8% taxing jurisdiction?
$600, $300 x 10 x 20% (8% plus 12% tax on rental vehicle)
True or False:
When a dealership repairs an item based on Goodwill the parts used are taxable to dealership.
True
The owner's wife drives a new Lexus worth $53,000, with the "dealer" plates on it from May 2023 to February 2024. She drives 8,500 miles during this time. What is the use tax due at 8% taxing jurisdiction?
None, this vehicle does not qualify as mixed use, the entire tax is due on the vehicle.
A dealership includes a full tank of gas with every vehicle, as per the window sticker. Would the dealership be entitled to a refund/credit of tax paid on the fuel? If so, what refund form would they need to complete?
Yes, entitled to credit, form FT-500
All of the following are taxable to a dealer:
Tire mounting system, car lift system, New York State inspection equipment and air compressors
No, NYS inspection equipment is exempt to dealer.
When a long-term lease for a vehicle that is to be used 50% or more in a business does not specify a lease term, how many months should be used to calculate tax due?
Open-ended leases are subject to 32 months of taxability
This lists the stock # of vehicle, when it comes into and out of dealer's inventory & odometer reading when purchased and sold.
Police Book or Book of Registry
A dealership takes out of inventory a vehicle worth $34,000, to be used as a complimentary service loaner for all customers having service done for 10 months. The vehicle will be driven less than 10,000 miles during this time. They aren't contractually obligated to provide the vehicle to all customers. What will be the use tax due with a taxing jurisdiction of 8.375%?
$2847.50, entire vehicle is taxable since it does not qualify as mixed use vehicle.
All of these items are taxable to dealer:
Welding gasses, sandpaper, car wash soap, brake cleaner, car wax, paper floor mats and plastic seat covers
False: Wax goes with vehicle and is therefore not taxable.
What is it called when the bank audits the auto dealers inventory?
Floor Plan Audits
A customer enters into a 4 year lease agreement at $450/month. The customer pays the following:
$125 documentation fee, $1,500 down payment and a manufacturers rebate of $1,200. What will be the tax due at lease inception in an 8.25% taxing jurisdiction?
48 x $450 = 21600 +1500+1200 = 24,300 x .0825 = 2,004.75