When Real Estate Sales Include Personal Property: Understanding Your Use Tax Obligation

All property can be divided into two major categories:

• Real property
• Personal property

Real property includes land and anything permanently attached to it, such as buildings or other structures. Personal property includes tangible items that are movable, such as machinery, equipment, furniture, and supplies.

When personal property is purchased or acquired with the sale of real property and the seller did not collect sales tax, the buyer must report and pay use tax.