Form E-589CI Do I have to pay taxes on the total build of this barn or just the labor?

WE had a barn built and were given a form E-589CI. Where do we implement this on our tax return? Must we pay taxes on the entire contract (materials and labor)?

posted

As I understand from the following ( from NC DOR ) -->https://files.nc.gov/ncdor/documents/files/e589ci_7-18_webfill.pdf

this is just a statement of a contract between the contractor and you that this capital improvement is subject to sales/use tax. I am assuming that you are handling this outside of your State return filing ( or you have to include this as the use tax liability if if it has not been taxed as such ). This has no impact on the federal return.

Is this what you meant or ?

Its sort of what I meant. I now (thanks to you:) am beginning to understand that I must pay state tax on this (we have not as yet because the contractor stated it was a 'tax free' sale due to the form E-589CI)... We want to pay the proper amount of taxes, and I need to know if we must pay taxes on both the labor and the supplies. Thank you so much.