Tuesday, September 25, 2012

Buying or selling a business, and sales tax

"Unless all the requirements are met, a purchaser of business assets in a bulk sale transaction may be held personally liable for any unpaid sales taxes due from the seller."

Bulk sale transaction is defined as "a sale, transfer, or assignment in bulk of any ,part or the whole of business assets, other than in the ordinary course of business by a person required to collect tax. Transfer by way of a gift does not preclude such transfer from being a bulk sale...

"A sales tax will be imposed upon the transfer of any tangible personal property
from the seller to the purchaser which is included in the property sold in bulk,
except for property intended for resale or property exempt from tax.
The tax is not imposed on real property or on intangible personal property such as
cash, goodwill, or accounts receivable."

Read more here.

2 comments:

Chelsea Richards said...

Oh yes! I almost forgot that taxes are included in this kind of process nowadays. It is nice to be reminded with articles like this and somehow helps us to think if we can still negotiate the value for us not to feel that much of a tax that we need to handle. Great blog! Thanks for sharing.
IllianaProperties.com

jack johan said...

It is really nice to be reminded with blogs like this that will be helps us to think .So we can feel that much of a tax that we need to handle.Selling a business or buying plays an important role in taxes.