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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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395.0000 Occasional Sales—Sale of a Business—Business Reorganization—Regulation 1595

Annotation 395.2560

(l) Sales Between Parent and Subsidiaries


395.2560 Used Equipment. The transfer of used equipment at its depreciated book value to a wholly owned subsidiary is not exempt as an occasional sale, unless it is a transfer of all or substantially all of the property held or used by the transferor in an activity requiring the holding of a seller's permit. If the parent corporation purchased the equipment tax paid, no tax liability is incurred by the loan or rental of the equipment to the subsidiary. 5/16/55.