At the basic level, rental and lease transactions are generally treated the same as sales transactions in most states. Sounds easy enough…
However, as with everything in sales tax, each state has its own rules and special situations to watch out for. Anyone who deals with rentals and leases – whether as the lessor or lessee – must understand the sales and use tax treatment of these transactions.
Several states have tax election options and exemptions for rental and lease transactions. Lessors and lessees must communicate and work together in these situations to understand the implications to business and to avoid negative tax consequences.
In this webinar, you’ll learn how to effectively manage sales and use tax for rental and lease transactions – no matter your role or the type of property you rent/lease.
Who should attend?
This webinar is intended for financial and operations personnel—including tax, general accounting, accounts payable, sales, tax technology, purchasing and credit—who deal with sales and use tax as part of their responsibilities. The course is also designed for general practitioners, with minimal to no experience. This course is also ideal for anyone who deals with rentals and leases, whether as the lessor or lessee.
Vice President of Regulatory Analysis and Design, Sovos
As vice president of regulatory analysis and design at Sovos, Chuck Maniace lives and breathes tax. For him, job No. 1 is ensuring Sovos customers remain fully compliant as rates, rules and requirements change around them
Regulatory General Counsel, Sovos
Erik Wallin is a Regulatory General Counsel in the Sovos Regulatory Analysis and Design Department. Erik has been a member of the Sovos team for over 10 years and focuses his work on U.S. transaction tax law which includes special expertise in the taxation of technology and the taxation mechanisms that apply throughout the Colorado home rule jurisdictions.
President & Founder, Sales Tax Institute
Diane L. Yetter is the “Sales Tax Nerd®” as well as a strategist, advisor, speaker, and author in the field of sales and use tax. She is president and founder of YETTER Tax, a sales tax consulting and tax technology firm in business since 1996. She is also the founder of The Sales Tax Institute, a premier think tank that offers live and online courses to educate business professionals about sales and use tax.
The challenge: There are many different types of rentals and leases and the sales tax treatment can be different for each of them.
Before you can figure out how something is taxed, you need to understand what you are selling. Is it real or personal, tangible or intangible property? Even though sales tax generally doesn’t apply to real or intangible property there are of course exceptions to this rule when it comes to rental transactions. Even if you know that it is personal property, the next step is to determine if there are special classifications for the property. Vehicles and other equipment that is titled for on-road use can have different rules depending on the rental term. Off-road heavy equipment can have different taxes depending on its weight.
Once you know what you are renting or leasing, then you need to understand what is included in the tax base for rentals and leases – in essence, how much of the amount is subject to sales or use tax. For example, are ancillary charges such as interest and finance charges included in the tax base? What about mandatory maintenance? Property tax? Are these items separately stated in the contract? What about the invoice presentation?
In addition, whether tax applies and the exemptions available can depend on the use or the type of the property rented or leased. Contract language and invoice presentation can also impact the taxability of rental and lease charges.
Whether you rent or lease equipment or real property, it’s vital to have a handle on the sales and use tax rules so you are aware of potential nexus and audit issues that can arise.
In this 90-minute live webinar, sales tax experts Charles Maniace and Erik Wallin of Sovos and Diane Yetter of the Sales Tax Institute will explain the ins and outs of taxation of rentals and leases. She’ll break down the practical tax considerations as well as the special situations you need to be aware of.
If you deal with rentals and leases, this webinar will give you the knowledge you need to ensure that you are treating them correctly for sales and use tax purposes. In addition, you can get answers to your questions from Diane during the live Q&A portion of the webinar.
Webinar attendees can earn 1.5 hours of CPE credit in the “Taxes” field of study
Prerequisites: This course requires no prerequisites or advance preparation.
Program Level: Basic
Delivery Method: Group Internet-Based
Additional Information about CPE
Questions about the registration or webinar process, or need help troubleshooting? Visit the Live Webinar FAQ page to get answers.
Custom sales and use tax trainings are available for those needing a specialized program.