Rehabbing & House Flipping
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated about 9 years ago,
Do you apply for a refund of sales taxes?
I'm paying sales taxes for my supplies when I flip a house. The IRS considers my house as inventory since I am a dealer. If this is inventory, I shouldn't have to pay state sales taxes for the supplies -- but I don't charge my end-buyers sales taxes, so I will never collect nor owe sales taxes. So do I sign up with the state as a merchant and submit refund returns for all of the sales taxes I put into my properties? Or something different?
I am in Denver CO, if it matters.
- Marc D.
REI Accountants