Taxes are handled differently per state.
In Washington, RE sales are subject to an Excise Tax but not sales tax.
Washington law requires builders of spec homes (or rehabs etc.) to pay sales taxes on ALL materials & labor going into the project.
The builder (or Rehabber) is considered the end consumer and thus MUST pay State Sales Tax on supplies.
If you get audited here and you have not payed proper sales taxes you are subject to 50% penalty and other fees or a Use tax.
have owned property for 8 years and now getting title insurance so as to sell, should we expect any difficulties.
Thanks
Quote:Most buyers and their mortgagors will want title insurance, ...loon,
Mortgagor = borrower; often the buyer, though could also be the owner in a refinance
Mortgagee = lender
Taxes are handled differently per state.
In Washington, RE sales are subject to an Excise Tax but not sales tax.
Washington law requires builders of spec homes (or rehabs etc.) to pay sales taxes on ALL materials & labor going into the project.
The builder (or Rehabber) is considered the end consumer and thus MUST pay State Sales Tax on supplies.
If you get audited here and you have not payed proper sales taxes you are subject to 50% penalty and other fees or a Use tax.
www.trustetc.com
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