Factoring Purchase Agreement Formula In Maricopa
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FAQ
Termination Fees Were Capital Losses, Not Deductible Expenses.
Contractors engaging in taxable construction projects or activities are required to obtain a TPT license.
Generally, Arizona imposes a sales tax on services if they are considered to be tangible personal property repair, replacement, or maintenance services.
Services are generally not taxable in Arizona, with the following exceptions: amusements. personal property rentals. contracting. severance (metal mining) transporting. nonmetal mining. job printing. publishing.
A. Membership, admission, or other fees charged by a limited-access retail business shall be considered part of the taxable gross income of the business activity.
Arizona originally adopted TPT in 1933 when the rate for selling tangible personal property at retail was 2 percent. That rate is currently 5.6 percent. On top of the state TPT, there may be one or more local TPTs, as well as one or more special district taxes, each of which can range between 0 percent and 5.6 percent.
A total Transaction Privilege (Sales) Tax rate of 8.35%, (6.35% State and County, 2.00% Prescott), is imposed on the gross income of any person engaging in Construction Contracting. If tax has been neither separately charged nor separately collected, factoring of tax is allowed in computing taxable income.
Your reporting of factoring expenses as a deduction Commissions, set-up fees, and other factoring expenses are all tax deductible. But the reporting method differs depending on whether you retain the ownership of your receivables or end up selling them to a factoring company as described above.
