Speaking of Taxes…

Upon further research, it seems that if you sell "tangible personal property" (which is anything you can literally touch) — or if you sell 3 or more items online from your home in a calendar year — you're a business. So, you have to collect and report sales tax on those items. So, if you live in Texas and buy one of my effects pedals, I have to collect and report sales tax, obviously. This also means that if you live in Texas and buy one of my prints — which are ordered from a seller in New York and shipped to me for delivery to you — I have to collect and report sales tax. These taxes are to be reported quarterly, and require a tax permit.

For now, sellers still don't have to worry about taxing people that live outside their State — but Big Brother is trying his best to change that. Last I knew, Amazon had started charging tax for people buying from New York. That totally stinks. And as much as I'd love to tell The Man to shove it and conduct my affairs in hopes of never being found out, my Mom and Pop brought me up too well to be comfortable breaking State and Federal law. And of course, there's the potential for being audited, which brings up another point: you can get your butt handed to you by Feds not only by them auditing you and finding out you're a cheat — but if someone who has purchased something from you gets audited, and the Feds follow the paper trail back to you. Most people forget about customers being audited — and that's how Big Brother gets lots of people.

Isn't Government fun?

Posted by .(JavaScript must be enabled to view this email address) on 07/08 at 02:00 PM

Comments:

On 07/08 (04:49 PM), .(JavaScript must be enabled to view this email address) said...

WE’RE WATCHING YOU…

On 07/09 (08:28 AM), Jim said...

Yeah, I got “spot inspected” because my business address is my personal address—and because I’ve been working under a dba. The wife said that they were suspicious because my business is teh komputr.

Then, they tried to tax me on teh komputr. Meh.

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