Here are some commonly asked tax questions we received lately along with our responses:

Q: I’ll be traveling abroad for business soon and want to base my deduction for meals on the Per Diem rates instead of keeping track of all my meal receipts.  Where can I find the updated Per Diem Rates?

 A: Each year, the federal government assigns one of six per diem rates to every metropolitan area in the continental United States and posts them at Home | GSA. The Department of Defense sets the per diem rates for travel to foreign destinations as well as Alaska, Hawaii, and U.S. territories, and makes them available at: Per Diem Rate Lookup | Defense Travel Management Office (dod.mil).

Q: I applied to collect sales tax with the state but I am confused as to how it works. I own a dental practice.  When I buy toothbrushes, I pay sale tax there, then I sell it back for extra $15 profit or whatever. Do I then at end of year, calculate the tax off the profit I made and pay the state?

A: Once you sign up to collect and remit sales taxes with Mass, you need to notify the toothbrush vendor that you should no longer be subject to sales taxes when you purchase the toothbrushes since you are now registered with Mass as a reseller.  You should be able to complete your own resale certificate (commonly known as the ST-4 form) and provide that to the vendor at which time will stop charging you sales taxes on your purchases. You will then be responsible for collecting sales taxes on the full price of each toothbrush you sell. More information is available at:  dor-sales-use-form-st-4.pdf (mass.gov)