N.M. Admin. Code § 3.2.203.8

Current through Register Vol. 35, No. 24, December 23, 2024

Section 3.2.203.8 - LIMITATION ON NUMBER OF DEDUCTIONS ALLOWED

A. The receipts from a single transaction may be deducted only once, even when two or more sections of the Gross Receipts and Compensating Tax Act allow a deduction for the receipts from that transaction.

B. Example: X appliance company sells electric ranges, refrigerators and dishwashers to Y, a home builder, who installs them in the kitchens of houses that Y is building for sale. X reports the receipts from the transaction to the department but deducts them first under Section 7-9-47 NMSA 1978, which allows a deduction for sales for resale, and then again under Section 7-9-51 NMSA 1978, which permits a deduction for sales of tangible personal property to persons engaged in the construction business. X will not be allowed to deduct the same receipts twice. Receipts, whether deductible under one or several sections (Sections 7-9-46 through 7-9-78.1 NMSA 1978 or Sections 7-9-83 through 7-9-90 NMSA 1978) may be deducted only once from gross receipts.

12/5/69, 3/9/72, 11/20/72, 3/20/74, 7/26/76, 6/18/79, 4/7/82, 5/4/84, 4/2/86, 11/26/90, 11/15/96; 3.2.203.8 NMAC - Rn, 3 NMAC 2.45.8 & A, 5/31/01