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Accounting, Payroll & Pension Issues/Taxable Amount
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Question
Please share the formula to determine the taxable amount of a purchase if all you have access to is the actual sales tax amount.
Thank you.
The formula to calculate the sales tax amount is taxable purchase x sales tax rate. Therefore the taxable purchase amount equals the sales tax amount divided by the sales tax rate.
Your question did not include the sales tax rate which is needed to do these calculations.
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Accounting, Payroll & Pension Issues
Answers by Expert:
Arthur Naman
Expertise
General accounting and bookkeeping questions. How to do monthly bookkeeping, how to prepare financial reports. How to reconcile accounts.
I cannot answer questions pertaining to pension or retirement planning.
This is not a forum to have homework answered. Please do your own homework.
Experience
30 years' experience doing tax and accounting work
Education/Credentials
MPA from Univ. of Texas at Austin, MBA Golden Gate Univ, San Francisco CA
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