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In Washington state you must pay use tax on equipment you purchase and have not paid sales tax on.

A friend is buying some equipment. He's paying 3,000 now and 38,000 in May 2009 and 38,000 in May of 2010. He owes use tax on the full amount. My question is when is the use tax due? Does it depend on how the sales document is worded? Can the sales document be worded so the use tax is not due until the payment is made? He is taking possession of the equipment now. Can it be like a lease/buy kind of thing?

One CPA we talked to said pay when the payment is made, the other said it's all due now. Of course, my imaginary Internet friends know more than either of these guys. <g>

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