44
Yes you can get in trouble. Here is the quote from the Bill of Sale form from California:
This line is right above where you sign.
I certify (or declare) under penalty of perjury under the laws of the
State of California that the foregoing is true and correct.
Other states are similar. Virginia uses more words:
In accordance with all applicable ...
29
Can doing this get me in trouble later ? Or will it be just the buyer
because its the buyers decision or idea ?
Definitely can, and not just the buyer since you're signing this thing as well. This is what is called "tax fraud".
17
When I lived in Ohio, when you went to register a car that you'd bought private sale, they looked up the book value, and if you were some percentage below that, you had a choice of paying tax on the book value, or getting sworn notarized forms that this was the price you really paid, and if you were caught lying, you could go to jail.
The one exception ...
12
You can point out the following to the buyer when talking him out of trying to cheat on his taxes:
As the buyer, the reward from the crime is so small and the penalties so high, it's simply not worth it. If you buy a $10,000 car for $1000, the DMV is going to immediately notice that fair market value wasn't paid and you'll get caught. If you try to wiggle ...
11
The Texas state sales and use tax rate is 6.25 percent, but local
taxing jurisdictions (cities, counties, special-purpose districts and
transit authorities) also may impose sales and use tax up to 2 percent
for a total maximum combined rate of 8.25 percent.
-- https://comptroller.texas.gov/taxes/sales/faq/local.php
10
According to Wikipedia, the Illinois state sales tax (which is one component of the Chicago rate) can be different on different types of goods (e.g., groceries vs prepared food). It is left as an exercise to the reader to determine whether some particular combination of goods could be purchased under different tax rates so that the total comes to $20.17.
9
Of course. The rationale is exactly the same as always: profit is taxed. The fact that you use intermediate barter to make that profit is irrelevant.
To clarify, as it seems that you think it makes a difference that no money "changed hands".
Consider this situation:
You produced item X, which cost you $100 to produce.
You have 100 of those in stock....
8
Most states that have a "sales" tax actually have a sales and use tax.
The sales tax covers the situation where you buy an item in state X and you use it in state X. The use tax covers the situation where you buy it in state Y and use it in state Z.
State Z where you will be using it wants you to pay the use tax for the item. They do exempt you from the ...
8
The state income/sales tax deduction is an itemized deduction, located on Schedule A. If this taxpayer didn't have enough deductions, the software would have chosen the standard deduction instead. If this is the case, then it wouldn't matter if they change the amount of the sales tax paid, because with the standard deduction, it would have no effect.
Take ...
answered Apr 17 '16 at 22:07
Ben Miller - Remember Monica
108k28 gold badges307 silver badges388 bronze badges
7
What Chase told you is correct. You are paying for a big sales tax because the state of Ohio is assuming you bought the car in Ohio. Just fill out the form like they said and send it in.
The Kentucky revenue web site says the following:
Credit to New Residents of KY -
When offering a vehicle for registration for the first time in
Kentucky which was ...
7
In the United States the sales tax regulations are done by the state (though some sates do allow cities or counties to piggy back on those taxes).
Regarding online sales, a vendor like Amazon maybe required to collect and forward to the state sales tax depending on:
does the state tax online sales.
does the state only require sales tax if the vendor has a ...
7
As it turns out, Talgov has a convoluted way it bills taxes which it doesn't explain on its bills or website. Its website claims to bill electricity at a rate of $7.59/month + $0.10522/kWh but, with taxes, it actually comes to $8.5631/month plus $0.11598/kWh.
On top of the advertised rate, it bills a gross receipts tax of 2.56406%. It also bills a public ...
7
Your understanding is incorrect. Unless you live in a state that does not have sales tax, you are obligated to pay tax on that purchase. Whether you are paying origin-based tax or destination-based tax is determined by where the business selling you the item is located. Reference: https://www.thebalance.com/which-sales-tax-rate-do-i-charge-my-customers-...
7
Generally, you will get cash back for the entire amount (so $1.06 in your case).
The credit card issuer usually doesn't event know the tax amount, since it is charged as a single transaction.
6
First - get a professional tax consultation with a NY-licensed CPA or EA.
At what point do I need to worry about collecting sales taxes for the city and state of New York?
Generally, from the beginning. See here for more information on NYS sales tax.
At what point do I need to worry about record-keeping to report the income on my own taxes?
From the ...
6
Don't worry about it. The State doesn't care about rounding error. All you need to do is say "We charge our prices with tax included" - you know, like carnivals and movie theaters.
Then follow the procedures your state specifies for computing reportable tax. Quite likely it wants your pre-tax sales total for the reporting period. To get that, total up ...
answered Jun 26 '16 at 2:05
Harper - Reinstate Monica
49.9k9 gold badges81 silver badges164 bronze badges
6
You didn't indicate where this took place (U.S. or elsewhere), but at the end of the day, if they're supposed to charge you tax and it was legitimately a systems issue that prevented collection at the time of sale I don't think there's anything improper or illegal about it.
UPDATE: It occurred to me to add the fact that the sale is not technically complete ...
5
It depends on the State law, but in most sales tax is applied before any discount by the merchant, but after manufacturer's discount.
However, Groupon voucher in this case is not a discount, it is a credit, i.e.: form of payment. It doesn't affect the price. Thus the sales tax would apply to the whole amount ($20) and added to the total bill. You should be ...
5
Either way is correct. The difference is simply due to rounding error; usually, 2.74125 rounds to 2.74, not 2.75.
Mathematically, these methods are clearly equivalent:
where t is the gross tax rate. The left-hand side is the first method, and the right-hand side is the second method.
In the US, stores usually display prices without sales tax included. ...
5
What you are doing is barter trade. Most countries [if not all] would tax this on assumed fair value. There are instances where countries may relax this norm in border areas for a small amount.
Barter is not just for gold – one can virtually do this for any goods, i.e. sell garments in exchange for oil, sell electronic chips in exchange for consumer ...
5
If you sell through an intermediate who sets up the shop for you, odds are they collect and pay the sales tax for you. My experience is with publishing books through Amazon, where they definitely handle this for you. If you can find a retailer that will handle the tax implications, that might be a good reason to use them.
It looks like Etsy uses a ...
5
FWIW, I've got a printed Amazon.ca invoice that was included in a shipment of books that I received in July, 2013. In the right-side side panel, at the bottom and in fine print, it reads:
Amazon.com.ca, Inc.
410 Terry Avenue
North Seattle, WA 98109-5210
GST Registration Number/No enregistrement TPS
85730 5932 RT0001
[etc.]
If I view the same ...
5
Yes, software is considered a tangible good in NY State and if you are based in NY state, you are required to collect and remit sales tax from purchasers in NY state.
The rate you would charge would depend on which sales tax jurisdiction the purchaser lives in, which makes compliance rather difficult. You could also just charge sales tax based on YOUR ...
5
In general you don't have to charge sales tax when you ship an item from your state to the customers state, unless you actually have a nexus in the customers state. In general it doesn't matter what your state tax law is, it is only based on the tax law where your locations are and do they include the state where that customer is having the product delivered....
5
The plumber will apply for and receive a refund of the amount of VAT he paid on the purchase amount. That's the cornerstone of how VAT works, as opposed to a sales tax. So for example:
Pipe cost £15 to consumer -> £18 incl £3 VAT paid to the plumber
Pipe cost £10 to plumber -> £12 incl £2 VAT paid to the supplier
Pipe cost £5 to supplier -> £6 incl £1 VAT ...
5
The mechanism for paying income tax varies by business type, in general it's paid quarterly. Sales tax is separate regardless of business type. They collect sales tax from purchases and then send those collected sales taxes to the government(s).
Sales tax is collected on sales, while income tax for the business requires profit to be made. So an ...
5
Yard sales and the occasional Craigslist sale are considered "casual sales" so generally are not taxable.
There are, of course, exceptions, and laws vary by state.
Source: https://www.avalara.com/us/en/blog/2015/04/sales-tax-reporting-on-casual-sales.html
4
Your question can be generalized to address any significant changes in the tax code. The recent series of changes to the estate tax, for example, offered a year in which dying produced an unlimited exemption for your estate. 2010 will be remembered by tax geeks at "a good year to die."
To the exact point you mention, home purchases. This isn't as simple a ...
answered Aug 8 '14 at 13:28
4
The procedure for rounding for sales tax is dictated by state law. Even if there are city sales taxes, it is generally governed by state law. Most jurisdictions dictate that the subtotal by tax type is done, then the rate applied. Never expect that the rounding will be down.
The places that say they include sales tax in the prices are doing it to make ...
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