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A casual or isolated sale is a sale made by a person who is not in the business of selling the type of property involved. For example, a sale of used office furniture by an attorney or the sale of a bulldozer by a contractor are casual or isolated sales.  These sales are neither routine nor continuous.

Business and occupation (B&O) tax does not apply to casual or isolated sales.  However, when a casual or isolated sale is made by a person who is registered with the Department of Revenue retail sales tax must be collected and accounted for in every case of a casual sale to a consumer in the state.

To report a casual or isolated sale to a consumer, you must report the income on both the “Retailing” B&O tax and retail sales tax lines of the combined excise tax return.  You can take a deduction from the Retailing B&O tax under the “casual sales” deduction classification on the deduction detail page. No such deduction is available against the sales tax.

Casual or isolated sales to other than consumers (i.e., sales for resale) are wholesale sales and are reported under the “Wholesaling” B&O tax classification.  You can then take a “casual sales” deduction in the amount of the sale.