Taxes » Tax Deductions » 10 Craziest Tax Deductions For 2011Someone's a few fries shy of a Happy Meal10 of 12New Jersey requires residents to pay a use tax on items purchased out of state if they were not charged enough sales tax. Sure, it can be a big moneymaker on things like electronics. But a Happy Meal? Meyer elaborates."I explained the use tax to a client who called the next morning and asked, 'If I get a take-out meal in Pennsylvania and they only charge 6 percent sales tax, do I owe the extra 1 percent to New Jersey?' He was talking about less than $1 he would owe New Jersey, but he doesn't want to miss one tax that he owes.""'The answer is no,' I told him; he doesn't owe the extra 1 percent if he eats it in Pennsylvania. But if he brings it back to New Jersey, then he owes the 1 percent difference."« Back to the Tax Deductions page. Related Articles:Tax breaks for businessesDependents pay off on taxesMiscellaneous deductionsDon't dare deduct these!Related Links:Tax breaks for homeownersDeducting job-search costs10 overlooked tax breaksDeducting job expenses advertisement
Taxes » Tax Deductions » 10 Craziest Tax Deductions For 2011
New Jersey requires residents to pay a use tax on items purchased out of state if they were not charged enough sales tax. Sure, it can be a big moneymaker on things like electronics. But a Happy Meal? Meyer elaborates.
"I explained the use tax to a client who called the next morning and asked, 'If I get a take-out meal in Pennsylvania and they only charge 6 percent sales tax, do I owe the extra 1 percent to New Jersey?' He was talking about less than $1 he would owe New Jersey, but he doesn't want to miss one tax that he owes."
"'The answer is no,' I told him; he doesn't owe the extra 1 percent if he eats it in Pennsylvania. But if he brings it back to New Jersey, then he owes the 1 percent difference."
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