a couple tax questions regarding how/if to pay

[confusedinaz]

2 questions...

#1, i am not a dealer but have bought/sold a couple vehicles. nondealers pay sales tax on the vehicles when purchased, So when i sell them, should i/can i deduct the paid sales tax amount, from the amount owed?

#2, i have "helped" the company buy a couple items as it lacked the funding, so i paid for the excess out of pocket from my savings. i obviously want that put back into said savings, is there a way to get what the company "owes me" without paying tax on it (it's my income, i've already paid tax on that money that i lent the company once.), not sure if i've stated this in the most correct manner but it's late.

any help would be greatly appreciated. my accountants felt like a ripoff (and i couldn't afford them), and i have had no luck finding another one, so i've just been trying to keep good records and do things properly until i find a new accountant.

 

[ArcSine]

1. No, the sales tax you paid at the purchase of the vehicle isn't deducted from the income tax liability arising from the sale of same. Instead, the sales tax is included in the amount representing your total purchase cost of the vehicle. Then this total cost (including the sales tax) is compared to your subsequent selling price to arrive at your net gain or loss for income tax purposes.

For example, buy a vehicle for 1,000 and also pay sales tax of 100 at the purchase. Sell vehicle for 1,500. On your tax return you'll report a net gain of 400.

2. When you loan money to your company, it is NOT taxable income to you when the company repays you the loan. But it's a good idea to make sure that your advances to the company are properly reflected in your accounting records as loans rather than as capital contributions from owner. Not to say that capital contributions can't also be extracted from the company with no tax effect, but in some circumstances there are a few wrinkles that can trip you.