ITA

Tuition

Nursery schools, preschools, and private kindergartens do not have to pay business and occupation (B&O) tax on income earned from caring for children under eight years old who are not in first grade or above.

You must include these amounts in gross income reported under the Child Care classification and then take an “Other” deduction with a description such as “Privately operated kindergartens, preschools, etc.”

You may not deduct amounts received for children eight years or older or enrolled in or above the first grade.

Day care monitors

Monitors of home day care operators work for sponsors under one or more federal nutrition programs for the US Department of Agriculture (USDA). The sponsors receive funds from the Office of the Superintendent of Public Instruction (OSPI), which works with the monitors to ensure all federal regulations are met.

The Department of Social and Health Services (DSHS) contracts with multiple private providers to purchase various child welfare services. DSHS uses a lead-agency model when contracting for child welfare services. Under the lead-agency model, services may be provided directly by the lead agency or through subcontracts and agreements with service providers.

This guide was created to help the real estate industry easily understand Washington state taxes that apply to their business activities. This guide is intended to provide general information on tax obligations and tax reporting instructions. The information does not replace or substitute Washington laws (RCW) or rules (WAC).

For more information or to get answers to specific questions, you may request a tax ruling.

Staging refers to making temporary changes to a home for purposes of showcasing the home or similar homes for sale. Staging generally includes arranging furniture and décor. Staging does not include making improvements to real property, such as painting walls, stenciling, wallpapering, etc.

You may refer a buyer or seller to another firm or broker. As a result, you may receive a fee when the real estate transaction closes. The referral fee you receive is subject to business and occupation (B&O) tax under the Service and Other Activities classification.

Property located outside of Washington

If you receive referral fees related to real properties located outside of Washington, you may be able to use our apportionment formula to determine how much of your apportionable income is subject to B&O tax in Washington.

Real estate firms may hire photographers or videographers to help market their properties.

Generally, sales of digital photographs are subject to business and occupation (B&O) tax under the Retailing classification, and you must collect sales tax. However, you do not have to collect sales tax if the real estate firm provides a completed Digital Products and Remote Access Software Exemption Certificate.

Many real estate brokers hire sign posting businesses to setup and take down the signs on properties offered for sale. The broker typically owns their “for sale” signs, while the sign posting business owns the post on which the broker’s sign will hang. The sign posting business will dig a hole in the ground, temporarily install a post, and hang the broker’s sign on the post. Once the property is sold or the listing contract expires, the sign posting business will remove the post and sign, then backfill the hole.

Real estate appraisers assess the value of real property and provide a report of their findings. Real estate inspectors examine the condition of a home and/or building and provide a report of their findings.

Gross income for real estate appraisal services and real estate inspection services is subject to B&O tax under the Service and Other Activities classification. Retail sales tax does not apply.

Real estate businesses are subject to retail sales or use tax on the purchase of furniture, equipment, consumable goods, and retail services. Examples of purchases real estate businesses must pay sales or use tax on include, but are not limited to: