Tax Question

[Mingus Fingus]

Hey All,

I bought my bass over two years ago from Kai Arvi in Canada. Just yesterday I got a letter in the mail from the state of Maryland saying that I owe $650 in taxes on the bass. Has anyone else experienced this? I am making my living teaching and playing bass, so would there be an exemption because the bass is an essential tool for my career? If anyone could give me some advice I would really appreciate it. Don't really have $650 to shell out right now.

adam.

[Freddels]

You should speak to your local tax advisor about this.
States are getting very aggressive about their sales and use taxes. Generally, if you purchase something out of your home state (in another state where the sales tax is less than your home state's) then your home state expects you to pay the difference. For example, if Maryland's sales tax is 5% and you purchase something in another state with a 4% sales tax, then Maryland wants the 1% difference.

Since you use the bass for a business purpose, you should speak to your tax advisor and you may be able to add the additional $650 to the basis and deduct it under Section 179.

[Mingus Fingus]

Thanks for the advice. I will definitely do that.