California Sales Tax for Interior Designers - Deductions – Tax-paid Purchases Resold Prior to Use

You may take a deduction on your sales and use tax return if you paid an amount for California sales or use tax when you purchased an item and then sold that item in a taxable transaction before using it.


Include the price of the item under Cost of Tax-Paid Purchases Resold Prior to Use.

Example: You buy furniture for your office, paying an amount for sales tax to your supplier. You decide not to use one end table and sell it to a client. You can take a deduction for the cost of the table on the same tax return on which you report the sale to your client.


Source: California Department of Tax & Fee Administration (CDTFA)

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