Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Taxes (https://www.askmehelpdesk.com/forumdisplay.php?f=320)
-   -   Where do they draw the tax line? (https://www.askmehelpdesk.com/showthread.php?t=316134)

  • Feb 11, 2009, 10:46 AM
    BennyM
    Where do they draw the tax line?
    Hi,

    I have a tax question please; If a C Corp in Nevada takes an order (and payment) from a company in California for landscaping services, but hires a subcontractor based in Nevada to do the physical work needed in California, would the C Corp be subject to California taxation? In other words, would California require taxes paid by the C Corp when there's merely a job order and payment coming from California, even though the physical work was done by another company?

    Thanks,
    BennyM
  • Feb 12, 2009, 12:33 AM
    MukatA

    You are paying to the subcontractor, which must be reported on 1099-misc. The subcontractor is responsible for CA taxes as they are present in CA.
    I do not think that the C Corp is subject to CA state tax.

  • All times are GMT -7. The time now is 02:59 PM.