Line 2 From CDTFA-401-EZ (Calif Sales And Use Tax Return)

[A-Two-O]

Hi there,

Please see the attached image...

Let's say line 1 is $20k.

And that total included two "purchases subject to use tax."

The first purchase was $900 and had approx $76 worth of tax.

The second purchase was for $2800 and had approx $240 worth of tax.

So for Line 2 ("Purchases subject to use tax"), am I adding the two tax amounts (76 +240), or the two item amounts (900 + 2800)?

Thanks in advance for any clarification.

[ErnieS0 · Accepted solution]

Edited 1/31/21 1:05 PT

In your example add $900 and $2,800. That is line 2 amount. 

Line 1 is Total (gross) sales. Report all sales related to your California business (include all manner of sales).

Line 2 Purchases subject to use tax. Enter the purchase price of merchandise, equipment, or other tangible personal property which you purchased without paying California sales or use tax and which you used for purposes other than resale in the regular course of business. The purchase may have been made without payment of tax because you used a resale or other exemption certificate to make the purchase; you purchased from an out-of-state retailer who did not collect California use tax; or you made a purchase from an unlicensed retailer, such as a person making an occasional sale of a vessel or an aircraft.

Line 3 Total. Enter total of lines 1 and 2.

See the instructions for Form CDTFA-401-EZ.