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Understanding AFB Tax Rates for Direct Sales: What You Need to Know

In summary, the conversation is about a consultant who received a question from a customer regarding the tax rate on her order. The consultant suggests contacting headquarters for clarification and mentions that there may be a tax on purchases made on base. The consultant later updates that some bases do have a lower tax rate based on an agreement with the state, but this does not apply to Oklahoma.
MichelleT
65
I just had a customer call me about the tax that she will have to pay on her order. We live on an air force base, and she says that there is a different tax rate than what the tax calculator says. Has anyone heard of this? I know that purchases that we make on base at the store are tax free, is it the same for direct selling?
 
Hi Michelle~
That is a good question actually. I used to live on post (Fort Sill) before I joined Pampered Chef. I haven't done a show on post yet, but if I were you I would call HO. It's good to tell your host that you checked with your higher ups before getting back to her with an answer. My assumption would be whatever the tax info says when you look it up in CC then call HO to verify. But I did go to a PC show awhile back on post and there was a tax. She isn't buying from the Air Force Base so I would think there is a tax. You don't get a tax break from everything while living on base (Although that would be nice!) :p Let us know what you find out.
 
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That's kinda what I thought. I called HQ, and they have never heard of it, so I've left a message with the tax line and I'm just waiting for a call back. She said that she has a friend that is a consultant in Nebraska and her friend told her that the tax rate is different. It would be nice though if we got a tax break for everything!
 
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  • #4
Update for all of you who live on a base/postTaxline got back with me about the lower tax rate and it turns out that some bases do get a lower tax rate, it's based on an agreement between the base and the state. However, Oklahoma does not offer this. So if you live in another state, I would check on it!
 
Thanks for the info!I'm in Oklahoma too right now...figures they don't offer a lower tax for the bases! Well, that is good to know and thanks for posting what you found out!
 

Related to Understanding AFB Tax Rates for Direct Sales: What You Need to Know

What is "Tax on Afb Different"?

"Tax on Afb Different" is a type of tax that is imposed on the difference between the Alternative Minimum Tax (AMT) and the Regular Tax. It is designed to prevent taxpayers from using certain tax deductions and credits to significantly reduce their tax liability.

How is "Tax on Afb Different" calculated?

The calculation of "Tax on Afb Different" involves comparing the tax liability calculated under the AMT rules to the tax liability calculated under the Regular Tax rules. The difference between the two is then multiplied by the applicable tax rate to determine the amount of "Tax on Afb Different" that must be paid.

Who is affected by "Tax on Afb Different"?

Individuals, corporations, and other entities that are subject to the AMT are typically affected by "Tax on Afb Different". This includes taxpayers who have significant deductions and credits that are not allowed under the AMT rules, such as state and local taxes, certain medical expenses, and miscellaneous itemized deductions.

What is the purpose of "Tax on Afb Different"?

The purpose of "Tax on Afb Different" is to prevent taxpayers from using certain tax deductions and credits to significantly reduce their tax liability under the AMT. It ensures that individuals and corporations pay a minimum amount of tax, regardless of their deductions and credits, in order to maintain the overall fairness and integrity of the tax system.

Are there any strategies to minimize "Tax on Afb Different"?

There are certain tax planning strategies that can help minimize "Tax on Afb Different", such as deferring income and accelerating deductions in order to reduce the income subject to the AMT. However, it is important to consult with a tax professional before implementing any strategies, as they can have both tax and financial implications.

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