Tax Law (Questions About Taxes)/Should i file form 8873

Advertisement


Question
I am a single-person-owned LLC treated as a sole proprietorship that buys american-made equipment and sells it to a company in a foreign country. This company then uses this equipment in their business and does no resell it. All of my sales are to this foreign company. I do less than $5 million dollars worth of sales annually. Do I need to/Should I file a 8873.

Answer
yes
but more importantly, I bet a nickel I can save you money on your taxes.  there is generally a $5m exclusion, but I like to file the form and then claim exemption - this is done on the last few lines of the form

what sort of property?  sold to all one country?  direct to companies or do you have network of resellers there?

send a new question and mark it 'private' and I will provide follow up contact information

Patrick

Tax Law (Questions About Taxes)

All Answers


Answers by Expert:


Ask Experts

Volunteer


MEdusa

Expertise

Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).

Experience

19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

Organizations
AICPA, CSCPA (Ct society), National Tax,

Publications
a bunch.

Education/Credentials
MS tax and other post graduate coursework

Awards and Honors
variety including Summa Cum Laude

Past/Present Clients
I don't disclose or kiss and tell

©2016 About.com. All rights reserved.