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05-09-2008, 12:45 PM | #41 |
Banned
Join Date: May 2008
Location: Minnesota
Posts: 35
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Quote:
In other words, you're spouting off incorrect information as fact, and you want someone else to do the research for you.
No, you don't know the technicalities, because there is no law against selling something you bought from a retailer. Once you buy something from the store and leave with it, it is no longer "new". You are not required to collect taxes when selling your personal property, and damn sure not personal property for which you sales taxes have already been paid, such as anything you purchase from Wal-Mart, Target, or any other retailer. Do I have my "license" for what, exactly? For ticket scalping, yes. Not for selling your own property that you purchased from a retailer. |
05-09-2008, 12:49 PM | #42 |
Crimson Guard
Join Date: Sep 2007
Location: New Castle, Delaware
Posts: 4,498
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Read the quote you just posted. It applies to "retail or wholesale merchants." That's Wal-Mart, Target, TRU, your Local Comic Book Shop. That does not under any circumstances apply to the guy going to the retail store, buying stuff, paying state sales tax and retail price, then reselling on eBay.
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05-09-2008, 12:52 PM | #43 |
Banned
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Location: Minnesota
Posts: 35
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If you sell something on a regular basis, then you are operating a business, whether you call it a business or not doesn't matter. Therefore required to have the merchant's certificate (in North Carolina).
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05-09-2008, 12:55 PM | #44 |
Crimson Guard
Join Date: Sep 2007
Location: New Castle, Delaware
Posts: 4,498
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Quote:
No you're not, because you already paid the sales tax. That's the state of North Carolina's only financial interest in the matter. A business buys wholesale so that they don't pay sales tax. If you're not buying wholesale, you're not selling retail.
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05-09-2008, 12:56 PM | #45 |
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Location: Minnesota
Posts: 35
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Here is a quote from an article I found...
lot of people are surprised to find out that their cherished hobbies have somehow "morphed" into real businesses overnight without their knowledge. Your good-faith belief that what you're doing is "only a hobby" doesn't count for much, however, when it comes to the IRS and your state and local tax authorities. Under current law, if you're making even as much as $1 doing anything, the tax authorities don't care if it's a hobby or a business--they want their money. They'll view you as being self-employed, you'll have to report your earnings as income, and you'll have to pay taxes on that income. "Gross income," as the IRS defines it, includes income "from whatever source derived." Let's say you're a coin collector. You sold two coins on eBay last year just to get them out of your collection, and you made $100 profit doing so. You should report the $100 as income on your tax return this year. The "business vs. hobby" distinction truly comes into play when you lose money. So, in my example above, if you lost $100 when you sold the two coins on eBay, the IRS wouldn't let you deduct the $100 against your income from other sources, such as your day job. You can only deduct "hobby losses" against gains from the same hobby. So if this year you sell five coins on eBay, making a $200 profit on two of the coins and a $200 loss on the other three, you can "net" the loss against the profit and report zero income from your hobby. |
05-09-2008, 12:57 PM | #46 |
Banned
Join Date: May 2008
Location: Minnesota
Posts: 35
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05-09-2008, 01:04 PM | #47 |
lurkerish
Join Date: Feb 2008
Location: Clarion, PA
Posts: 539
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Quote:
A "Reseller's License" is something a business needs in order to buy goods at wholesale prices and avoid paying sales tax on them.
When Joe Ebaysellerdude goes and buys 10 figures at Wal-Mart, he pays the sales tax. The state is satisfied, because it gets its cut. Wal-Mart is satisfied, because it moved merchandise. Those figures now belong to him. He absolutely can go and sell them on eBay. Neither the state nor the retailer have a claim on them anymore. . think of it like a comic book store. the store owner orders the comics, gets them in FROM A DISTRIBUTOR, there are no taxes paid at this point (correct me if I am wrong) Diamond being the biggest one. now the store owner has to have a license to sell these which he gets the tax ID with the license. the person who buys off of him has to pay the taxes on the comic. the consumer. now they can go ahead and sell that same comic on ebay or whereever else and not charge taxes....why? becuase they were already paid. fully legal.. same goes for toys, once purchased at walmart, the taxes have been paid. they can be sold away. |
05-09-2008, 01:05 PM | #48 |
Drunk-Viper
Join Date: Mar 2008
Location: In an alley with a viper
Posts: 1,540
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that seems to be addressing income tax, not sales tax. - referring to the article, not the above poster.
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05-09-2008, 01:08 PM | #49 |
lurkerish
Join Date: Feb 2008
Location: Clarion, PA
Posts: 539
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Quote:
Here is a quote from an article I found...
lot of people are surprised to find out that their cherished hobbies have somehow "morphed" into real businesses overnight without their knowledge. Your good-faith belief that what you're doing is "only a hobby" doesn't count for much, however, when it comes to the IRS and your state and local tax authorities. Under current law, if you're making even as much as $1 doing anything, the tax authorities don't care if it's a hobby or a business--they want their money. They'll view you as being self-employed, you'll have to report your earnings as income, and you'll have to pay taxes on that income. "Gross income," as the IRS defines it, includes income "from whatever source derived." Let's say you're a coin collector. You sold two coins on eBay last year just to get them out of your collection, and you made $100 profit doing so. You should report the $100 as income on your tax return this year. The "business vs. hobby" distinction truly comes into play when you lose money. So, in my example above, if you lost $100 when you sold the two coins on eBay, the IRS wouldn't let you deduct the $100 against your income from other sources, such as your day job. You can only deduct "hobby losses" against gains from the same hobby. So if this year you sell five coins on eBay, making a $200 profit on two of the coins and a $200 loss on the other three, you can "net" the loss against the profit and report zero income from your hobby. |
05-09-2008, 01:11 PM | #50 |
Banned
Join Date: May 2008
Location: Minnesota
Posts: 35
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Quote:
this is actually correct. the difference is in where it is purchased from....if you purchase it FROM THE MANUFACTURER .....you havent paid taxes on it. it is considered "New". if purchased from walmart, target...etc etc. taxes have been paid. it is personal property, it can be sold at will.
think of it like a comic book store. the store owner orders the comics, gets them in FROM A DISTRIBUTOR, there are no taxes paid at this point (correct me if I am wrong) Diamond being the biggest one. now the store owner has to have a license to sell these which he gets the tax ID with the license. the person who buys off of him has to pay the taxes on the comic. the consumer. now they can go ahead and sell that same comic on ebay or whereever else and not charge taxes....why? becuase they were already paid. fully legal.. same goes for toys, once purchased at walmart, the taxes have been paid. they can be sold away. |
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