So my dad and I were on the phone talking about taxes. I'm incorporated as an LLC in New Jersey if that helps.

Currently I write up my estimates as materials labor. We ran into a debate and I'm unsure of what to do here. Here is the example of what we used (its an actual example on my estimates)

I have house 1 I'm working in, I had to replace 2 GFCI outlets. House 2 I needed to replace 1 GFCI. I bought a 4 pack of outlets for 50.33 from HD, and now have 1 left over. I charged $20 per GFCI outlet, (this includes a new wall plate). I am paying sales tax on the purchase at home depot.

My dad said that i can't charge $20 per outlet flat rate for materials because I'm buying them in bulk, the bulk price is $12.xx per outlet. Singles are $17.xx in change. But because I'm paying sales tax at HD, its not considered a pass through because its not being bill exactly.

He says I need to become an exempt status so that I do not pay sales tax at HD, but rather at the end point where the landlord is.

Which brings up the second topic of confusion is sales tax on Labor. I'm not sure where the line is between exempt and taxable improvements. I have a bathroom I am in the middle of remodeling, ripped it down to bare studs, do I need to collect sales tax on the labor? Or is that only because its a repair.