Sales & Use Tax for Construction Contractors (Completed)

Sales and use tax for those in the construction industry can be very complex. Even those contractors who only do business in one state can face many issues in trying to determine whether they are performing a real property contract vs. a sale of tangible personal property with installation, dealing with project owners who are adamant their project is exempt, controlling their purchasing processes to make sure tax gets paid, and more. For contractors doing business in multiple states, the headaches grow exponentially because of many nuances in laws from state to state. This course will help you understand the issues contractors face in these areas and provide practical advice for how to best manage the issues.

Who Should Attend
CPAs in public practice or in industry who advise on or are responsible for sale/use tax matters in the construction industry.

Topics Covered

• Overview of the industry issues for sales/use tax
• Discussion of the general rule that contractors are consumers
• How to determine whether a project is real property or personal property
• Examination of exemption claims made by project owners
• Consideration of sales/use tax on job materials and equipment
• Practical advice for dealing with purchasing in order to avoid audit surprises

Learning Objectives

• Identify the need to first determine the status of their contract as one for real property vs. personal property
• Recognize valid exemption claims by project owners
• Implement procedures to proactively handle sales/use tax on their purchases of job materials and equipment

Level
Intermediate

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
A fundamental understanding of how state sales/use tax systems work.

Advance Preparation
None