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My company (job) is basically a warehouse/distribution center. The nature of the business is just office and storage, no retail sales, no outside storage or displays, dry use only. This is what on our business tax receipt. We lease a warehouse from a landlord that charges us for rent and sales tax per month. We store slot machines and distribute them to wherever the client ask us to. Our client who pays us a storage fee monthly owns these slot machines. My question is, do we pay sales tax on that storage rental and packing/shipping the machines for them? Then turn around and pay income tax on the profit, when that storage fee is the only income we receive?
ANSWER
Expert Bhupinder Sood's Answer:
Bhupinder S Sood CPA
615-400-3361