New Mexico Gross Receipts Tax

USA Discussion in 'General Accountancy Discussion' started by Sam Palmer, Nov 25, 2018.

  1. Sam Palmer

    Sam Palmer

    Joined:
    Nov 25, 2018
    Messages:
    1
    Likes Received:
    0
    My wife, a resident of New Mexico, is the First Trustee of the Irrevocable Trust of her recently deceased sister who also resided in New Mexico. She will be compensated for services she has provided when the Trust is closed. This is the only time she expects to be the Trustee of any estate and is not in business. Is she required to pay Gross Receipts Tax in New Mexico for the services she is providing?
     
    Sam Palmer, Nov 25, 2018
    #1
    1. Advertisements

  2. Sam Palmer

    kirby VIP Member

    Joined:
    May 12, 2011
    Messages:
    1,380
    Likes Received:
    187
    The law says it is a tax on persons “engaged in a business”. So she is not taxable as she is not in business to do these services.
     
    kirby, Nov 26, 2018
    #2
    1. Advertisements

  3. Sam Palmer

    Camie

    Joined:
    Nov 29, 2018
    Messages:
    1
    Likes Received:
    0
    What if you have a business in NM and you sell products. You sell to NM residents and people outside of NM. You sell a product to someone outside of NM and the product originated in New York and goes directly to the buyer in California. Is that sale subject to NM GRT?
     
    Camie, Nov 29, 2018
    #3
  4. Sam Palmer

    kirby VIP Member

    Joined:
    May 12, 2011
    Messages:
    1,380
    Likes Received:
    187
    Just having a business in New Mexico establishes nexus and so the gross receipts are taxable.
     
    kirby, Dec 3, 2018
    #4
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.