[Beepart]

Is it legal to charge taxes on kitchen cabinets, countertops and installation?
I thought that anything permanent in a home was not taxed.

[graciegirl]

Originally Posted by Beepart

Is it legal to charge taxes on kitchen cabinets, countertops and installation?
I thought that anything permanent in a home was not taxed.

What is taxed, can be taxed and is taxed changes from State to State and from par...............Never mind.

I have ALWAYS been a FISCAL CONSERVATIVE. Income is not taxed in Florida. I am damned worried about how inheritance is going to be taxed soon Nationally. We have an adult child with cognitive deficits that we have saved all our life to protect after we are gone.

[retiredguy123]

Originally Posted by graciegirl

What is taxed, can be taxed and is taxed changes from State to State and from par...............Never mind.

I have ALWAYS been a FISCAL CONSERVATIVE. Income is not taxed in Florida. I am damned worried about how inheritance is going to be taxed soon Nationally. We have an adult child with cognitive deficits that we have saved all our life to protect after we are gone.

Annual gifting can help.

[retiredguy123]

Originally Posted by Beepart

Is it legal to charge taxes on kitchen cabinets, countertops and installation?
I thought that anything permanent in a home was not taxed.

It sounds like a property improvement, which should not be taxed. I would ask for proof that they are actually paying the tax to a state or local Government before I would pay anything that they claim is a tax.

[GrumpyOldMan]

Originally Posted by Beepart

Is it legal to charge taxes on kitchen cabinets, countertops and installation?
I thought that anything permanent in a home was not taxed.

In Florida, the purchase of materials and supplies to improve, alter, or repair and, buildings, homes, or other real property is subject to sales tax and applicable discretionary sales surtax.

[retiredguy123]

Originally Posted by GrumpyOldMan

In Florida, the purchase of materials and supplies to improve, alter, or repair and, buildings, homes, or other real property is subject to sales tax and applicable discretionary sales surtax.

Correct, but if the work was performed as a lump sum contract, the homeowner would not owe the tax. I think that is how most people get cabinets and countertops installed. Here is an excerpt from the Florida Deptartment of Revenue website.

"Lump sum, cost plus or fixed fee, guaranteed price, or time and materials contracts –
Contractors who perform lump sum, cost plus or fixed fee, guaranteed price, or time and
materials contracts do not sell tangible personal property to the real property owner. Under these
types of real property contracts, the contractor is the final consumer of materials and supplies used
in performing the contract. No sales tax is to be collected from the real property owner under these
contract types."

[GrumpyOldMan]

Originally Posted by retiredguy123

Correct, but if the work was performed as a lump sum contract, the homeowner would not owe the tax. I think that is how most people get cabinets and countertops installed. Here is an excerpt from the Florida Deptartment of Revenue website.

"Lump sum, cost plus or fixed fee, guaranteed price, or time and materials contracts –
Contractors who perform lump sum, cost plus or fixed fee, guaranteed price, or time and
materials contracts do not sell tangible personal property to the real property owner. Under these
types of real property contracts, the contractor is the final consumer of materials and supplies used
in performing the contract. No sales tax is to be collected from the real property owner under these
contract types."

Sounds right, so the contractor buries the taxes they pay on the materials in the lump sum price.

[kkingston57]

Home Depot did our kitchen 10 years ago and told us that if they did the install, no sales tax. If we only bought the cabinets, they had to charge sales tax.

[Billy1]

The contractor probably itemized the tax, which was paid when purchasing material.

[Tmarkwald]

Originally Posted by graciegirl

What is taxed, can be taxed and is taxed changes from State to State and from par...............Never mind.

I have ALWAYS been a FISCAL CONSERVATIVE. Income is not taxed in Florida. I am damned worried about how inheritance is going to be taxed soon Nationally. We have an adult child with cognitive deficits that we have saved all our life to protect after we are gone.

I'd ensure you have a revocable trust in place that transfers over to a nonrevocable trust in the name of the trustee upon death. We did this with my parents and now they are gone and, unless it gets changed, protects the funds. In addition, you can set up the dividends to be paid as earned so they don't get taxed at the trust income rate.

[J1ceasar]

I just hope you consulted great attorneys and giving your money away to that person and trust every year so that what you have you have is not taxed . You can also give money to others in your family I can put money in a trust so you lower your asset base when you both die. I really feel for you as I have people in my family in the same situation

[Singerlady]

Consult an attorney about your child. Sounds like you may need a Special Needs Trust to protect those assets.

[bowlingal]

Beepart, I just had LVP flooring installed....NO tax. I did go to another store for a price comparison, and he wanted to charge me tax, and I said the same thing to him ( as a permanent addition) and he said other places do charge tax, but it is the price. I think that is illegal, tax must be broken out on the contract. Needless to say, I didn't buy from him.

[jimbo2012]

Two ways
the contractor can pay the tax on materiel and build it in to the price

Or itemize the bill, taxable for materiel and labor non taxable

The second option is more transparent.

In certain states if permanent installation no tax.

[Gunny2403]

But, you are referring to a tax on the materials , which is correct and is included as a cost of goods total. The total installed price is not to be taxed.