Quote:
Originally Posted by VitamenDee Trying to figure out the IRS position on free tans where the tan tax is concerned.
Example is giving away non-UV product with the purchase of a tan.
"buy this upgrade, get a free sample of this lotion" |
This one's simple: UV upgrade costs $10 bucks, offer spend $10 for upgrade and get $10 lotion packet free. Tan Tax based on the $10 upgrade.
Quote:
Originally Posted by VitamenDee
"buy this bottle of lotion, get a free tan in this amazing bed"
Is the IRS still going to demand a 10% tax on the retail of that offer? |
Short version: Bottle of lotion retails for $50, Amazing bed single session retails for $25. Offer, spend $50 on bottle, get tan free. IRS view: Total value of lotion and service $75, ratio of taxable compared to full value $25 divided by $75 for 1/3, therefore, 1/3 of $50 price actually charged is taxable $50 x 1/3 = $16.67 taxable so tan tax is $1.67.