Instructions For Form Boe-401-Gs - Fuel Retailers Return (Page 4 of 9) in pdf

BOE-401-GSIN REV. 5 (4-13)

STATE OF CALIFORNIA

BOARD OF EQUALIZATION

Line 9. Sales Tax

Enter an amount on this line only if the amount you reported on line 1 includes California sales or use taxes. Enter only

the tax amounts that are included on line 1. (Regulation 1700, Reimbursement for Sales Tax.)

Line 10. Other Deductions

Each deduction must be clearly explained.

You may be entitled to claim other deductions in addition to those allowed on lines 4 through 9. Enter the amount for

those deductions here.

Examples of transactions that may be deductible include the following:

• Sales by pharmacists of prescription medicines for use by humans. (Regulation 1591, Medicines and Medical

Supplies, Devices and Appliances.)

• Transportation charges for delivering goods to a purchaser by an independent carrier (the transportation charges

must be separately stated on the invoice). If you charge more for delivery than your actual costs, the added amount

is subject to tax and cannot be deducted. (Regulation 1628, Transportation Charges or publication 100, Shipping and

Delivery Charges.)

• Sales of animals, seeds, plants and fertilizer, used as, or used to produce, food for human consumption. (Regulations

1587, Animal Life and Feed, and 1588, Seeds, Plants and Fertilizers.)

For more information, request a copy of publication 61, Sales and Use Taxes: Exemptions and Exclusions.

Section B. Tax Recovery Deductions/Adjustments

If you have tax recovery deductions prior to July 1, 2011, click here.

Line 1. Bad Debt Losses—On Taxable Sales

Enter bad debt losses, as described below.

If you have reported a taxable sale and have been unable to collect payment for the sale, you may take a deduction for

the taxable sales portion of the bad debt.

Bad debts may take the form of:

• Checks that have been returned to you unpaid by the purchaser’s bank and which you have determined to be

uncollectible, or

• Amounts from charge or credit sales that you have determined to be uncollectible.

The bad debts must be charged off for income tax purposes, or, if you are not required to file income tax returns, the bad

debts must be charged off in accordance with generally accepted accounting principles.

Enter only the amount of the sale before tax. For example, if you sold merchandise for $15 plus sales tax and were

unable to collect any amount for the sale, you would claim $15 as a deduction.

If you claim a bad debt deduction and later recover a payment, you must report the payment on the tax return filed for

the period in which the recovery payment was made.

If any of the tax recovery deductions in Section B were related to sales of Motor Vehicle Fuel (MVF), please contact our

Taxpayer Information Section.

(Regulation 1642, Bad Debts.)

Line 2. Bad Debt Losses—Incurred in Connection with Accounts Held by Lenders

If you are registered with the BOE as a Lender, you may be entitled to deduct certain bad debt losses. There are

requirements to qualify for this deduction. For detailed information, please see Regulation 1642, Bad Debts.

Line 3. Cost of Tax-Paid Purchases Resold Prior to Use

You may claim a deduction on this line if you:

• Paid California sales or use tax when purchasing goods or merchandise, and

• Sold the property without first using it (other than retaining, demonstrating, or displaying it while holding it for sale in

the regular course of business).

Enter only the amount of the purchase price before tax. For example, if the property was sold to you for $15 plus tax, you

would claim only $15 as a deduction.

(Regulation 1701, Tax-Paid Purchases Resold.)

Instructions For Form Boe-401-Gs - Fuel Retailers Return Page 4

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